Larry is opening a new laundromat in the city of St. John's. His rent is $1500 per month, and he pays insurance of $1200 per year. Before opening, he had to pay $15,000 to renovate the space and buy appropriate equipment. He hired 2 employees, and pays them a salary of $40,000 per year. For every 6 items of clothing that he cleans, he pays out approximately $15 in cleaning chemicals. Additionally, the plastic covers he uses for the clothes he cleans cost $0.50 each, and he spends approximately $10 in additional hydro costs for every 30 items he cleans. What are Larry's total monthly fixed costs, one-time fixed costs, and variable costs?
Larry is opening a new laundromat in the city of St. John's. His rent is $1500 per month, and he pays insurance of $1200 per year. Before opening, he had to pay $15,000 to renovate the space and buy appropriate equipment. He hired 2 employees, and pays them a salary of $40,000 per year. For every 6 items of clothing that he cleans, he pays out approximately $15 in cleaning chemicals. Additionally, the plastic covers he uses for the clothes he cleans cost $0.50 each, and he spends approximately $10 in additional hydro costs for every 30 items he cleans. What are Larry's total monthly fixed costs, one-time fixed costs, and variable costs?
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter24: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 12CQ
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