bedCruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs.Sales priceVariable costsFixed costs$127.00 per service89.00 per service119,548 per yearCruse 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?ookb. 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 evenintrencesb. Required sales in a year to earn an annual operating profit of $32,604 after taxes:cleaning servicescleaning services

Solution:Break-even point refers to the point where operating profit of the firm is zero, i.e. the…

Answered: Cruse Cleaning offers residential and…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A retailer buys a product from a supplier for $40. The retailer needs a 30% markup on cost to cover operating expenses. If the product is sold for $48, what is the outcome?
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Frisch Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit Variable expense per unit Fixed expense per month $ 170.00 $ 83.30 $138,720 Required: Show all calculations and formulas and present your work in good accounting form as illustrated in the lectures. a) Determine the monthly b) Determine the monthly break-even in units? break-even in dollars?
Braile Gear Works sells a single gear for a price of $73.00 per unit. The variable costs of the gear are $41.00 per gear and annual fixed costs are $548,800. Required: a. What is the break-even level of annual sales for Braile Gear Works? b. The cost analyst tells you that, based on the price and cost information of the gear and the marketing department's sales projection for next year, the margin of safety percentage is 30 percent. How many units does marketing expect to sell next year? Note: Do not round intermediate calculations. Break-even level Number of units to be sold parts
The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00 Variable cost per unit: $15.00 Total fixed costs: $100,000 How many units does the company have to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?
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Lindon Company is the exclusive distributor for an automotive product selling for $22.00 per unit with a CM ratio of 30%. The company's fixed expenses are $105,600 per year and it plans to sell 17,400 units this year. Required: 1. What are the variable expenses per unit? Note: Round your "per unit" answer to 2 decimal places. 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $39,600 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $2.20 per unit. What is the company's new break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $39,600? 1. Variable expense per unit 2. Break-even point in units 2. Break-even point in dollar sales 3. Unit sales needed to attain target profit 3. Dollar sales needed to attain target profit 4. New break-even point in unit sales 4. New break-even point…
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500.A. What is the company’s break-even point in units?B. What is the company’s break-even point in dollars?C. Construct a contribution margin income statement for the month of September when they will sell 900 units.D. How many units will Maple need to sell in order to reach a target profit of $45,000?E. What dollar sales will Maple need in order to reach a target profit of $45,000?F. Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.

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