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--------------------------- --------------------------- --------------------------- Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Cruse Cleaning is
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Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $40,014 after taxes? Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,519.00 and the Tour(a fat-tire trail model) sells for $4,519.00. Unit variable costs for the Commuter are $1,769.00 and for the Tour- X$3,219.00. Annual fixed costs at Georgeland are $669,650. The marketing manager estimates that the annual mix of sales is 30 percent Commuter model and 70 percent Touring model. Required: a. How many of each model ebike must Georgeland Cycles sell every year to break even? b. How many of each model ebike must Georgeland Cycles sell every year to earn operating profits of $102,150 before taxes? Complete this question by entering your answers in the tabs below. How many of each model ebike must Georgeland Cycles sell every year to break evenStep by Step Solution
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