Question
James House is planning on starting a cleaning services business but has not decided whether he should focus on residential clients or commercial clients. His
James House is planning on starting a cleaning services business but has not decided whether he should focus on residential clients or commercial clients. His estimates of revenue, variable expenses, and fixed expenses are shown below. Revenue Variable expense Fixed expense Residential $ 25 per hour $ 15 per hour $ 5ee per month Commercial $ 35 per hour $ 20 per hour S825 per month Required: 1. At what volume of hours per month will James be indifferent between focusing on residential versus commercial clients? Number of hours 2. Calculate the number of break-even hours for residential clients and commercial clients. Break-even hours for residential clients Break-even hours for commercial clients
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