Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the break-even point in hours? (Round to the nearest whole hour.)
a.3,714
b.1,393
c.2,229
d.5,571
e.12,000
| Break-even point in hours = Fixed cost/Contribution margin per unit |
| Break-even point in hours = 78000/(35-21)= 5,571 |
| Option D is correct |
Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour...
Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the budgeted operating income? a. $168,000 b. $420,000 c. $174,000 d. $90,000 e. $342,000
The Warren Watch Company sells watches for $21, fixed costs are $100,000, and variable costs are $11 per watch. What is the firm's gain or loss at sales of 6,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. $ What is the firm's gain or loss at sales of 17,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. $ What is the break-even point (unit sales)?...
SISAIVNVN JAIV321 The Warren Watch Company sels watches for $21, fixed costs are $170,000, and variable costs are $11 per watch. a. What is the firm's gain or loss at sales of 9,000 watdhes? Enter loss (f any) as negative value, Round your answer to the nearest cent. What is the firm's gain or los5s at sales of 15,000 watches? Enter loss (f any) as negative value. Round your answer to the nearest cent. $ b. What is the break...
BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for $21, fixed costs are $100,000, and variable costs are $11 per watch. a. What is the firm's gain or loss at sales of 10,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. What is the firm's gain or loss at sales of 20,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. b. What is the break-even point...
Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $25.0 per hour for each type of service, but lawn maintenance has higher variable costs ($10.0 per hour) than garden maintenance ($5.0 per hour) because of fuel expenses incurred to operate lawn-mowing equipment. All employees are paid a fixed monthly salary. A contribution format income statement for a recent month for the two services appears below. During the month, 8,000...
Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $25.0 per hour for each type of service, but lawn maintenance has higher variable costs ($10.0 per hour) than garden maintenance ($50 per hour) because of fuel expenses incurred to operate lawn-mowing equipment. All employees are paid a fixed monthly salary. A contribution format income statement for a recent month for the two services appears below. During the month, 8,000...
Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flower arrangements to professional offices. Jonah has fixed costs of $3,520 per month for office/greenhouse rent, advertising, and a delivery van. Variable costs for the plants, fertilizer, pots, and other supplies average $22 per job. GTC charges $62 per month for the average job. Required: 1. How many jobs must GTC average each month to break even? ??? jobs per month 2. What is the...
Break-Even Sales: Sales for Target Profit Health-Temp Company is a placement agency for temporary nurses. It serves hospitals and clinics throughout the metropolitan area. Health-Temp Company believes it will place temporary nurses for a total of 28,000 hours next year. Health-Temp charges the hospitals and clinics $100 per hour and has variable costs of $87.00 per hour (this includes the payment to the nurse). Total fixed costs equal $352,430. Required: 1. Calculate the contribution margin per unit and the contribution...
Salary Health insurance Dental Insurance Life insurance Dependent care Professional dues Personal use of company jet $309,000 10,300 3.989 4.589 4.18 1,230 201,080 Assume the life insurance is a group-term life insurance policy that provides $208,000 of coverage for Ahmed. (Use EXHIBIT 12-8) Assuming Ahmed is subject to a marginal tax rate of 32 percent, what is his after-tax benefit of receiving each of these benefits? (Enter all amounts as positive values. Round your intermediate computations and final onswers to...
Suppose a company has an Info Processing Division that provides database management services for the professional photographers who buy its frames. The division uses state-of-the-art equipment and employs five information specialists. Each specialist works an average of 160 hours a month. The division's controller has compiled the following information: Actual Data for Year Forecasted Data for Year November December January February March Client billings (sales) $ 25,000 $ 35,000 $25,000 $20,000 $40,000 Selling & administrative expenses $ 12,000 $ 13,000...