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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$ 145.00per serviceVariable costs107.00per serviceFixed
Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs.
Sales price$ 145.00per serviceVariable costs107.00per serviceFixed costs217,360per yearCruse 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 an annual operating profit of $59,280 after taxes?
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