Concept explainers
Myrna White is a mobile housekeeper. The price for a standard house cleaning is $150 and takes
5 hours. Each worker is paid $25/hour, uses $15 of materials and $0.50 per mile to use their own vehicle to travel from job to job. The average job is 5 miles. Arniz Meyroyan has a family reunion at her house and needs her house freshened up. She offers $75 for this emergency tidy-up service. This service includes vacuuming and cleaning floors, dusting, and cleaning the bathrooms. Only $5 of materials would be used.
A. Prepare an Excel spread sheet to determine the differential income if the emergency tidy-up service is priced at $75. The tidy-up service will take 2 hours.
B. If a $25 surcharge was included to make the price of $100 how would the differential income change?
C. If the hourly worker rate increased to $30/hour, how would net income change?
D. What other issue would you need to consider?
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