Chapter 10, Problem 4PB

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?