Clean Wash Laundromat

1672 Words Jul 17th, 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
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Note that Hair Cut will entail only to 60 kg per week (20 loads) or 240 kg per month (80 loads).
COMPUTE FOR THE VARIABLE AND FIXED COSTS OF ELECTRICITY

Electricity bills: Load (X) Amount (Y)
January 1,960.00 17,208.00
February 1,820.00 16,746.00
March 1,680.00 16,284.00
April 1,680.00 16,284.00
May 1,540.00 15,822.00
June 2,080.00 17,604.00
July 2,160.00 17,868.00
August 2,170.00 17,901.00
September 2,150.00 17,835.00
October 1,960.00 17,208.00
November 2,100.00 17,670.00
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