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Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price $ 125.00 per service
Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs.
Sales price | $ 125.00 | per service |
---|---|---|
Variable costs | 87.00 | per service |
Fixed costs | 10,8680 | per year |
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 $29,640 after taxes?
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 $29,640 after taxes
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