Break-Even Sales: Sales for Target Profit Health-Temp Company is a placement agency for temporary nurses. It serves hospitals and clinics throughout the metropolitan area. Health-Temp Company believes it will place temporary nurses for a total of 30,000 hours next year. Health-Temp charges the hospitals and clinics $130 per hour and has variable costs of $105.30 per hour (this includes the payment to the nurse). Total fixed costs equal $723,957. What if Health-Temp had target operating income (profit) of $187,720? Would sales revenue be larger or smaller than the one calculated in Requirement 3? Larger By how much? $fill in the blank
Break-Even Sales: Sales for Target Profit Health-Temp Company is a placement agency for temporary nurses. It serves hospitals and clinics throughout the metropolitan area. Health-Temp Company believes it will place temporary nurses for a total of 30,000 hours next year. Health-Temp charges the hospitals and clinics $130 per hour and has variable costs of $105.30 per hour (this includes the payment to the nurse). Total fixed costs equal $723,957. What if Health-Temp had target operating income (profit) of $187,720? Would sales revenue be larger or smaller than the one calculated in Requirement 3? Larger By how much? $fill in the blank
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Break-Even Sales: Sales for Target Profit
Health-Temp Company is a placement agency for temporary nurses. It serves hospitals and clinics throughout the metropolitan area. Health-Temp Company believes it will place temporary nurses for a total of 30,000 hours next year. Health-Temp charges the hospitals and clinics $130 per hour and has variable costs of $105.30 per hour (this includes the payment to the nurse). Total fixed costs equal $723,957.
What if Health-Temp had target operating income (profit) of $187,720? Would sales revenue be larger or smaller than the one calculated in Requirement 3?
Larger
By how much?
$fill in the blank
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