Clean Wash Laundromat Essay

1687 Words Aug 1st, 2010 7 Pages
I. BACKGROUND OF THE CASE

Ms. Giesel Reyes, the proprietor of Clean Wash Laundromat, reread the recently received fax from Hair cuts, a well-established chain of beauty parlors. Hair cuts is proposing a business deal with Ms. Reyes wherein Hair Cuts will avail of the wash, dry and fold service of Clean Wash Laundromat at 15% off the regular price. The service will cover a period of four months from June to September, which are peak months for Clean Wash Laundromat and will entail 60 kg per week or 240 kg per month of laundry.

Clean w\Wash Laundromat was established two years ago with an initial investment of P800, 000.00. Located near to prominent universities and several residential condominiums, Clean Wash caters mostly to
…show more content…
17901
Low 1540 P15822 Variable cost per load (P17,901.00-P15,822.00) P2079 P3.30 2,170-1,540 630
Fixed Cost P17,901.00-(3.30 x 2170) P10,740.00

Using Least Square Method Variable cost per load P 3.30
Fixed Cost P1,0740.00

Electricity bills: Load (X) Amount (Y) Variable Cost Fixed Cost
January 1,960 17,208.00 1960 x 3.30 = 6,468.00 10,740.00
February 1,820 16,746.00 1820 x 3.30 = 6,006.00 10,740.00
March 1,680 16,284.00 1680 x 3.30 = 5,544.00 10,740.00
April 1,680 16,284.00 1680 x 3.30 = 5,544.00 10,740.00
May 1,540 15,822.00 1540 x 3.30 = 5,082.00 10,740.00
June 2,080 17,604.00 2080 x 3.30 = 6,864.00 10,740.00
July 2,160 17,868.00 2160 x 3.30 = 7,128.00 10,740.00
August 2,170 17,901.00 2170 x 3.30 = 7,161.00 10,740.00
September 2,150 17,835.00 2150 x 3.30 = 7,095.00 10,740.00
October 1,960 17,208.00 1960 x 3.30 = 6,468.00 10,740.00
November 2,100 17,670.00 2100 x 3.30 = 6,930.00 10,740.00
December 1,960 17,208.00

Related Documents