Maintaining a clean working environment is important to Namco, an industrial parts manufacturer. Cleaning the plant is the responsibility of the maintenance department.

The 65,000 square foot plant is thoroughly cleaned from four to eight times a month depending on the level and stage of production. For the most recent month, March, the plant was cleaned four times.

The production schedule for the next quarter (April through June) indicates that the plant will need to be cleaned five, six, and eight times respectively. Two of the resources needed to clean the plant are labor and cleaning supplies.

The cost driver for both resources is number of times the plant is cleaned. Plant cleaning laborers are full-time employees who are paid the same wages regardless of the number of times the plant is cleaned. Cleaning supplies is a variable cost. The March cost of labor was $25,000 and cleaning supplies used cost $8,500.

Prepare a table that shows how labor cost, cleaning supplies cost, total cost and total cost per cleaning changes in response to the number of times the plant is cleaned. What is the predicted total cost of plant cleaning for the next quarter?

For the month of march, labour cost per cleaning = $250,000/4 = $62,500

supplies cost  per cleaning  =   $8500/4 =  $2,125

For the month of April ,

labour cost =  $62,500  * 5  = $312,500

Supplies cost  =  $2,125  * 5  = $10,625

for the month of May,

labour cost = $62,500 * 6 = $385,625

supplies cost =  $2,125 * 6 = $12,750

For the month of June

Lanour cost = $62,500 * 8 =  $800,000

Supplies Cost =  $2,125 * 8 = $17,000

Total estimated cost for the Quarter

Labour cost :

April                        $312,500

May                          385,625    

June                         800,000                      1,498,125                  

Supplies Cost :

April                      $10,625

May                         12,750

June                         17,000                          40,375

Total cost                                                      1,538,500

Explanation:

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.