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please solve this question Exercise 4-7 Break-Even Analysis [LO5]; Margin of Safety [LO7] James House is planning on starting a cleaning services business but has
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Exercise 4-7 Break-Even Analysis [LO5]; Margin of Safety [LO7] 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. Required: 1. Calculate the number of break-even hours for residential clients and commercial clients. (Round your answers to 1 decimal place.) 2. Assume that James decides to focus on commercial clients and his business is operating at 365 hours per month. Calculate the margin of safety both in dollars and as a percentage of sales. (Round percentage answer to 1 decimal place.)Step by Step Solution
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