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Mathematics, 18.09.2021 09:10 butryn

Fixed and Variable costs include:•Rent of business factory -$1,000per month•LeaseofNissan electric cars (3 cars) -$1200 per montheach•Biodegradable kitchen cleaning chemicals -$20per litre of chemicals•Purchase and installation of solar panel and battery system –lease payments of $800per month x 12 months•Casual staff (3) wages –Paid at $30per hour (as a new business, even the owner only pays herself for the hours she works to assist with cash flow)•Leaseand installation of 20,000 litre rainwater tank -$250 per month x 12 months •Council rates -$1,200 per year•Business insurance -$200per monthThe business has been running for three months, and so far averages:•60 cleaning jobs per month (so about 20 jobs each, approximately one per workday))•Each job uses approximately 2 litres of cleaning chemicals•Each jobtakes approximately 4 hoursQuestions: (20marks in total)a)For each of the costs listed above, type them into an excel worksheetand indicate next to them whether they are fixed costs or variable costs (either separately group or label them)(2marks)b)Using formulas, calculate the `per month’ total for the fixedcosts(2marks)c)Using formulas, calculate the `per month’ total for the variable costs(using the operationaldata aboveassuming 60 jobs per month)(3marks)d)Calculate the total of the fixed and variable costs incurred in a monthif the business grows to 100 jobs per month(3marks)e)If they plan to charge the customers$250 for each kitchen clean, how much revenue will they earn for a monthdoing 60 jobs? (2marks)f)Will they cover all their costs if they chargethis rateper kitchen clean if they do 60 jobs per month?Support your answer with data.(2 marks)g)How much profit will they earn if theycharge this rate ($250) per kitchen clean, butif they do 100 jobs per month? Support your answer with data. (2 marks)h)Reflecting on this assessment task explain the impact on:(4 marks):a)Variable cost per unit and Total variable costs as production increase?b)Fixed cost per unit and Total Fixed costs per month as production increase

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