Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Having troubles understanding how to do this Breakeven Your client, SmartClean, Inc., is a cleaning service for office and industrial locations. SmartClean has been in

Having troubles understanding how to do this

image text in transcribed
Breakeven Your client, SmartClean, Inc., is a cleaning service for office and industrial locations. SmartClean has been in Tones? and has shown steady revenue growth each year. The owner originally started the business using a business icon, the du has $10,000 remaining on the loan after steadily making payments and has an excellent personal and business she The owner wishes to expand the SmartClean business into three new territories, needs an infusion of capital and is lagg $50,000 to make the expansion. The expected fixed costs for the current business and expansion are $75,000. Smart Clean's average charge job The variable cost per job is $35.00. Conduct breakeven analysis {based on given price and costs) in this spreadsheet . 1) Complete the table below. 2) Calculate the BEQ. 3) Referring to the table you completed in part 1), what is the minimum quantity (in buckets of 50 jobs) you recommend the owner to cover the remaining $10,000 loan? Variable Fixed Total Profit Variable Fixed (Loss Price Quantity Total Revenue Costs Costs Costs Costs Costs 15.56 O $35 $75,000 50 100 150 200 Minimum Quantity 250 300 350 400 450 500 550 600 650

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions

Question

H.W(2) Q: Show that ' = and p = are odd Under parity p' p

Answered: 1 week ago

Question

Hello using gririth third edition chapter 6 please help

Answered: 1 week ago

Question

Hello using grifth edition three chapter 6

Answered: 1 week ago