Question
Steve is a window cleaner. He has the following costs: Insurance: $2,750/yearVehicle Lease: $4,000/year Accounting Fees: $2,510/yearGas: $2.00/job Detergent: $2.00/jobCell Phone: $1,500/year Equipment: $6/jobMarketing: $2,200/year
- Steve is a window cleaner. He has the following costs:
Insurance: $2,750/yearVehicle Lease: $4,000/year
Accounting Fees: $2,510/yearGas: $2.00/job
Detergent: $2.00/jobCell Phone: $1,500/year
Equipment: $6/jobMarketing: $2,200/year
Water: $1.50/job
He charges clients $59 to clean their windows.
a. What is the unit contribution margin per house?
b. What is the number of houses Billy needs to clean in order to break even?
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Managerial Accounting
Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson
9th Edition
0538842822, 978-0538842822
