| Exercise 2.92 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | SOLUTION | Unnamed: 5 | Unnamed: 6 | Unnamed: 7 |
|---|---|---|---|---|---|---|---|
| Total Number of Washes | |||||||
| 6 machines x 5 days x 50 weeks x 10 cycles | 12 hours each day | 2 hours idle | This means machine operates 10 hours each day | ||||
| 15000 | Washes | per year | 1 cycle = 1 hour | This means there are 10 cycles each day. | |||
| Total Variable Operating Cost | |||||||
| Washing Materials | (£0.94 x 15000 washes) | 14100 | |||||
| Electricity & Maintenance | (£0.50 x 15000 washes) | 7500 | |||||
| Wages | (£1.56 x 15000 washes) | 23400 | |||||
| 45000 | |||||||
| Laundrette Annual Service Cost Statement | |||||||
| £ | |||||||
| Total Variable Operating Cost | 45000 | ||||||
| Rent of Property | 5000 | ||||||
| Holiday Bonus | 1000 | ||||||
| Annual Insurance | 1200 | ||||||
| Annual Lease of Machines | 7800 | ||||||
| TOTAL COST | 60000 | ||||||
| NOTES | |||||||
| Rent of Property | £1250 x 4 quarters | ||||||
| 5000 | |||||||
| Holiday Bonus | 2 workers x £500 | ||||||
| 1000 | |||||||
| Cost per Wash | |||||||
| Total Cost / Total Number of Washes | |||||||
| £60000 / 15000 washes | |||||||
| 4 | |||||||
| Charge per Wash to Customers | |||||||
| Cost per Wash | 4 | ||||||
| Add Profit Margin (20%) | 1 | ||||||
| Charge | 5 | ||||||
| Total Profit for the Year | |||||||
| Profit per Wash x Total Washes | |||||||
| £1.00 x 15000 washes | |||||||
| 15000 |