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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
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? Preston Products produces a disinfecting liquid. The Iiquid is sold in one gallon containers and has the following price and cost characteristics. Preston Products is subject to an Income tax rate of 20 percent. Required: a. How many gallons must Preston Products sell every month to break even? b. How many gallons must Preston Products sell to earn a monthly operating profit of $78,000 after taxes? Note: Round your answer to the nearest whole number
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