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Larry is opening a new laundromat in the city of St. John's. His rent is $1500 per month, and he pays insurance of $1200 per year. Before opening, he had to pay $15,000 to renovate the space and buy appropriate equipment. He hired 2 employees, and pays them a salary of $40,000 per year. For every 6 items of clothing that he cleans, he pays out approximately $15 in cleaning chemicals. Additionally, the plastic covers he uses for the clothes he cleans cost $0.50 each, and he spends approximately $10 in additional hydro costs for every 30 items he cleans. What are Larry's total monthly fixed costs, one-time fixed costs, and variable costs?

Larry is opening a new laundromat in the city of St. John's. His rent is $1500 per month, and he pays insurance of $1200 per year. Before opening, he had to pay $15,000 to renovate the space and buy appropriate equipment. He hired 2 employees, and pays them a salary of $40,000 per year. For every 6 items of clothing that he cleans, he pays out approximately $15 in cleaning chemicals. Additionally, the plastic covers he uses for the clothes he cleans cost $0.50 each, and he spends approximately $10 in additional hydro costs for every 30 items he cleans. What are Larry's total monthly fixed costs, one-time fixed costs, and variable costs?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Larry is opening a new laundromat in the city of St. John's. His rent is $1500 per month, and he pays insurance of $1200 per year. Before opening, he had to pay $15,000 to renovate the space and buy appropriate equipment. He hired 2 employees, and pays them a salary of $40,000 per year. For every 6 items of clothing that he cleans, he pays out approximately $15 in cleaning chemicals. Additionally, the plastic covers he uses for the clothes he cleans cost $0.50 each, and he spends approximately $10 in additional hydro costs for every 30 items he cleans. What are Larry's total monthly fixed costs, one-time fixed costs, and variable costs? Assume that the clothes Larry cleans have an average selling price of approximately $25. What is Larry's breakeven for year 1 in units?
Transcribed Image Text:Larry is opening a new laundromat in the city of St. John's. His rent is $1500 per month, and he pays insurance of $1200 per year. Before opening, he had to pay $15,000 to renovate the space and buy appropriate equipment. He hired 2 employees, and pays them a salary of $40,000 per year. For every 6 items of clothing that he cleans, he pays out approximately $15 in cleaning chemicals. Additionally, the plastic covers he uses for the clothes he cleans cost $0.50 each, and he spends approximately $10 in additional hydro costs for every 30 items he cleans. What are Larry's total monthly fixed costs, one-time fixed costs, and variable costs? Assume that the clothes Larry cleans have an average selling price of approximately $25. What is Larry's breakeven for year 1 in units?
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