CMN 279 Study Guide - Laundry Service, Lineo, 18 Months

• School: Ryerson University
• Department: Communication
• Course: CMN 279
• Professor: John Burry

Document Summary

At your request, i have examined methods to shrink linen costs to increase profits. In the course of this study, i have examined professional documents and consulted with different suppliers pertaining to linen arrangements. This report will set out three possible solutions to reduce linen costs, and provide a recommendation based on my analysis. Solution one: retain the current linen rental agreement. The current weekly cost for all rental supplies including laundry service is . Solution two: purchase linen requirements and pay separate for laundry services. Total weekly costs to purchase linen (/104) = . 04. The total cost of purchasing linen with a useful life of two years is . The total weekly cost of linen including laundry services is . 04 while the current renting arrangement has a weekly cost of . Thus, purchasing linen is a significantly lower costing method than renting the same requirements for linen.