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. 1. Calculate the contribution margin per unit and the contribution margin ratio (express the ratio as a decimal rather than a percentage). If required, round your answers to two decimal places. Contribution margin per unit fill in the blank Contribution margin ratio fill in the blank 2. Calculate the sales revenue needed to break even. fill in the blank 3. Calculate the sales revenue needed to achieve a target profit of $153,140. 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. 1. Calculate the contribution margin per unit and the contribution margin ratio (express the ratio as a decimal rather than a percentage). If required, round your answers to two decimal places. Contribution margin per unit fill in the blank Contribution margin ratio fill in the blank 2. Calculate the sales revenue needed to break even. fill in the blank 3. Calculate the sales revenue needed to achieve a target profit of $153,140. 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.
1. Calculate the contribution margin per unit and the contribution margin ratio (express the ratio as a decimal rather than a percentage). If required, round your answers to two decimal places.
| Contribution margin per unit | fill in the blank |
| Contribution margin ratio | fill in the blank |
2. Calculate the sales revenue needed to break even.
fill in the blank
3. Calculate the sales revenue needed to achieve a target profit of $153,140.
fill in the blank
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