The cleaning service requires $39 in variable costs for cleaning materials. The fixed costs of labor, the company's truck, and administrative support are $349,200 per year. Chimneysweep averages 200 service calls per month. What is the average cost per cleaning service call?

Respuesta :

The average cost per cleaning service call charge by the company is $184.5.

What is an equation?

An equation is an expression that shows the relationship between two or more numbers and variables.

Let y represent the total cost for x number of service calls in a year. Hence:

y = 39x + 349200

For 200 service call, in a year, x = 200 * 12 = 2400

y = 39(2400) + 349200 = $442800

Average cost = $442800 / 2400 = 184.5

The average cost per cleaning service call charge by the company is $184.5.

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