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PLEASE I NEED HELP WITH JUST NUMBER 3 AND 4 ON HOW TO PLOT THE GRAPH Case Study Fixed and Variable Cost Behavior HiLine, Ltd.
PLEASE I NEED HELP WITH JUST NUMBER 3 AND 4 ON HOW TO PLOT THE GRAPH
Case Study Fixed and Variable Cost Behavior HiLine, Ltd. is a manufacturing facilities where keeping a clean working environment is important to them. The maintenance department has the responsibility for cleaning the plant. Two of the resources needed to clean the plant are labor and cleaning supplies. The cost driver for both resources is square feet cleaned. Plant cleaning laborers are paid the same wages regardless of the number of times the plant is cleaned. Cleaning supplies is a variable cost. The 38,000 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, July, the plant was cleaned four times. The July cost of labor was $11,750 and cleaning supplies used cost $8,450. The production schedule for the next quarter (August through October) indicates that the plant will need to be cleaned five, six, and eight times respectively In Excel 1. Prepare a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per square feet cleaned changes in response to the square feet cleaned. What is the predicted total cost of plant cleaning for the next quarter? 2. Suppose HiLine can hire an outside cleaning company to clean the plant as needed. The charge rate for cleaning is $3,850 per plant cleaning. If the outside cleaning company is hired, HiLine can lay off the workers who are now cleaning the plant and will spend nothing for cleaning supplies. Will HiLine save money with the outside cleaning company over the next quarter? Explain. Prepare a schedule that supports your answer. 3. Create a line chart that reflects the Total Cleaning Costs and Square Feet (Times Cleaned) for the two options (HiLine vs Outside Company). Must be properly labeled and on one chart. 4. At what level of activity (SqFt Cleaned) will the two options be indifferent?.plot a graph to show this also.
