Gardendale Associates offers landscape consultations, where they provide design advice and plans to residential customers. A single consultation is priced at $750.00. The variable costs of a consultation total $330.00 consisting mostly of labor and supplies. Annual fixed costs are $102,900. Gardendale Associates is subject to an Income tax rate of 24 percent. Required: a. What total revenue does Gardendale have to generate from selling consultations to break even? b. What total revenue does Gardendale have to generate from selling consultations to earn an annual operating profit of $106,400 after taxes? Break-even revenue Required revenue

Gardendale Associates offers landscape consultations, where they provide design advice and plans to residential customers. A single consultation is priced at $750.00. The variable costs of a consultation total $330.00 consisting mostly of labor and supplies. Annual fixed costs are $102,900. Gardendale Associates is subject to an Income tax rate of 24 percent. Required: a. What total revenue does Gardendale have to generate from selling consultations to break even? b. What total revenue does Gardendale have to generate from selling consultations to earn an annual operating profit of $106,400 after taxes? Break-even revenue Required revenue

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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Question

Gardendale Associates offers landscape consultations, where they provide design advice and plans to residential customers. A single
consultation is priced at $750.00. The variable costs of a consultation total $330.00 consisting mostly of labor and supplies. Annual
fixed costs are $102,900. Gardendale Associates is subject to an Income tax rate of 24 percent.
Required:
a. What total revenue does Gardendale have to generate from selling consultations to break even?
b. What total revenue does Gardendale have to generate from selling consultations to earn an annual operating profit of $106,400
after taxes?
Break-even revenue
Required revenue

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