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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 Variable costs Fixed
Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price Variable costs Fixed costs $141.00 per service 103.00 per service 195,624 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 a quarterly operating profit of $53,352 after taxes? 5 a Required sales in a year to break even b. Required sales in a year to earn a quarterly profit of $53,352 after taxes: 5,148 cleaning services cleaning services
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