Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price $ 127.00 per service. Variable costs 89.00 per service 119,548 per year Fixed costs 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 $32,604 after taxes? a. Required sales in a year to break even: b. Required sales in a year to eam an annual operating profit of $32,604 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 $ 127.00 per service. Variable costs 89.00 per service 119,548 per year Fixed costs 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 $32,604 after taxes? a. Required sales in a year to break even: b. Required sales in a year to eam an annual operating profit of $32,604 after taxes: cleaning services cleaning services
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A3
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
$ 127.00 per service
89.00 per service
119,548 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 $32,604 after taxes?
a. Required sales in a year to break even:
b. Required sales in a year to earn an annual operating profit of $32,604 after taxes:
cleaning services
cleaning services
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