Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price $ 137.00 per service Variable costs Fixed costs 99.88 per service 173,888 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 $47,424 after taxes? a. Required sales in a year to break even b. Required sales in a year to eam an annual operating profit of $47,424 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 $ 137.00 per service Variable costs Fixed costs 99.88 per service 173,888 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 $47,424 after taxes? a. Required sales in a year to break even b. Required sales in a year to eam an annual operating profit of $47,424 after taxes cleaning services cleaning services
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am.105.
Transcribed Image Text:Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs.
$ 137.00 per service.
99.80 per service
173,888 per year
Cruse Cleaning is subject to an income tax rate of 22 percent.
Sales price
Variable costs
Fixed costs
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 $47,424 after taxes?
a. Required sales in a year to break even:
b. Required sales in a year to earn an annual operating profit of $47,424 after taxes
cleaning services
cleaning services
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