Cleaning Service Costs Analysis

What is the average cost per cleaning service call? The average cost per cleaning service call is $498.75.

ChimneySweep provides cleaning services for residential chimneys and fireplaces, with $20 in variable costs for cleaning materials per service call. The fixed costs of labor, the company’s truck, and administrative support total $459,600 per year. With an average of 80 service calls per month, what is the average cost per cleaning service call?

Calculation:

Given data:

  • Fixed costs: $459,600
  • Variable costs: $19,200 ($20 x 80 x 12)
  • Number of calls: 960 (80 x 12)

To find the average cost per cleaning service call:

Average Cost Per Cleaning Service = Total Cost / Number of Calls Taken

Plugging in the values:

Average Cost Per Cleaning Service = ($19,200 + $459,600) / (80 x 12)

Average Cost Per Cleaning Service = $478,800 / 960

Average Cost Per Cleaning Service = $498.75

Therefore, the average cost per cleaning service call for ChimneySweep is $498.75.

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