Amy owns her own business as a landscaper of homes and office buildings. On average, maintaining a homeowners yard takes 2 hours per month, and Amy is paid $300 per month. The office buildings 35 hours of landscaping per month and pay $2800 monthly. Which type of client do you think Amy prefers? Explain your answer.
Answers
Amy prefers office buildings as her clients because even though she earns a lower hourly rate, the steady income and potentially reduced workload make it a more appealing option compared to homeowners.
Homeowners:
Hours of Work: Amy spends an average of 2 hours per month on maintaining a homeowner's yard.
Payment: She is paid $300 per month for this service.
Office Buildings:
Hours of Work: Amy spends 35 hours per month on landscaping for office buildings.
Payment: She receives $2800 per month for providing landscaping services to office buildings.
Now, let's calculate Amy's hourly rate for each type of client:
Homeowners:
Hourly Rate = Payment / Hours of Work
Hourly Rate = $300 / 2 hours
Hourly Rate ≈ $150 per hour
Office Buildings:
Hourly Rate = Payment / Hours of Work
Hourly Rate = $2800 / 35 hours
Hourly Rate =$80 per hour
From the calculations, we can see that Amy's hourly rate for homeowners is significantly higher ($150 per hour) than for office buildings ($80 per hour).
This means that Amy earns more per hour of work from homeowners compared to office buildings.
So, despite the lower hourly rate, the steady income and potential ease of managing a smaller number of office building clients could make Amy prefer them over homeowners as her primary clientele.
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