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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 $ 136.00 per service
Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs.
| Sales price | $ 136.00 | per service |
|---|---|---|
| Variable costs | 98.00 | per service |
| Fixed costs | 168,454 | per year |
Cruse Cleaning is subject to an income tax rate of 22 percent.
Required:
- How many cleaning services must Cruse Cleaning sell in a year to break even?
- How many cleaning services must Cruse Cleaning sell in a year to earn a quarterly operating profit of $45,942 after taxes?
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
3rd Edition
0136070736, 978-0136070733
