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Super Clean is local business in the Tri-cities area. It provides cleaning services to residential households and commercial establishments. Both households and businesses sign contracts with Super Clean. As the contract, Super Clean dispatches its crew to the locations. The crew performs the cleaning as per the contracts and reports back to the company main desk. The main desk then prepares the invoice and sends them to the clients. Clients have one day to pay the invoice. Sales volume can vary from one quarter to the next. In terms of expenses, the main expense for Super Clean relates to labour. They pay crew members competitive wages and benefits. The wage rate is calculated on an hourly basis and are fixed for the entire year. The next expense item is cleaning supplies. Super Clean accounts for cleaning supplies relative to the hours worked. For example, they estimate that cleaning supplies are consumed at a rate of 0.2 litres per labour hour. This is a good measure because the longer it takes for a site to be cleaned, more will be the consumption of cleaning supplies. Cleaning supplies are procured from a prominent vendor and the cost is fixed for the entire year. Sometimes clients are not happy about the cleaning services and register a complaint. In that case crew is dispatched again for a second cleaning. The hours accruing from such scenarios are not billed to the clean as this constitutes a 'service recovery'. However, the crew is paid for such hours. Super Clean maintains a record of these hours and classifies them as 'unproductive hours', or 'unbilled hours. This is

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