Tranquility Care provides home healthcare services at an average price of $70 per hour and incurs variable costs of $45 per hour.  Assume average fixed costs are $3,600 a month. (Round your answer to the nearest whole unit.)   What is the number of hours that must be billed to reach the breakeven point?

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter10: Short-term Decision Making
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Tranquility Care provides home healthcare services at an average price of $70 per hour and incurs variable costs of $45 per hour.  Assume average fixed costs are $3,600 a month. (Round your answer to the nearest whole unit.)

 

  1. What is the number of hours that must be billed to reach the breakeven point?
  2. If the company desires to make a profit of $2,000, how many hours must be completed?
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