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Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price Variable costs Fixed costs $132.00 per service. 94.00 per service 146,718 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $40,014 after taxes? Answer is complete but not entirely correct. 3,860 40,014 a. Required sales in a year to break even: b. Required sales in a year to earn an annual operating profit of $40,014 after taxes: cleaning services cleaning services

Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price Variable costs Fixed costs $132.00 per service. 94.00 per service 146,718 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $40,014 after taxes? Answer is complete but not entirely correct. 3,860 40,014 a. Required sales in a year to break even: b. Required sales in a year to earn an annual operating profit of $40,014 after taxes: cleaning services cleaning services

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price. Variable costs Fixed costs $132.00 per service 94.00 per service 146,718 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $40,014 after taxes? > Answer is complete but not entirely correct. a. Required sales in a year to break even: b. Required sales in a year to earn an annual operating profit of $40,014 after taxes: 3,860 X cleaning services 40,014 cleaning services
Transcribed Image Text:Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price. Variable costs Fixed costs $132.00 per service 94.00 per service 146,718 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $40,014 after taxes? > Answer is complete but not entirely correct. a. Required sales in a year to break even: b. Required sales in a year to earn an annual operating profit of $40,014 after taxes: 3,860 X cleaning services 40,014 cleaning services
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