Question

Tranquility Care provides home healthcare services at an average price of $70 per hour and incurs...

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? ​ 3. The company thinks it can reduce fixed costs to $3,400, but variable cost will increase to $48 per hour. The price per unit will not change. What is the new breakeven point in hours?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An engineering consulting firm measures its output in a standard service hour unit, which is a...
An engineering consulting firm measures its output in a standard service hour unit, which is a function of the personnel grade levels in the professional staff. The variable cost is $60 per standard service hour. The charge-out rate is $80 per hour. The maximum output of the firm is 150000 hours per year, and its fixed cost is $2000000 per year. For this firm, (a) What is the breakeven point in standard service hours and in percentage of total capacity?...
Lucent Manufacturing Company makes a product that it sells for $67 per unit. The company incurs...
Lucent Manufacturing Company makes a product that it sells for $67 per unit. The company incurs variable manufacturing costs of $14 per unit. Variable selling expenses are $13 per unit, annual fixed manufacturing costs are $186,000, and fixed selling and administrative costs are $362,800 per year. Contribution margin ratio % Break-even point in dollars Break-even point in units LUCENT MANUFACTURING COMPANY Contribution Margin Income Statement Sales Variable costs Contribution margin Fixed costs Net income
Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance....
Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $15.0 per hour for each type of service, but lawn maintenance has higher variable costs ($6.0 per hour) than garden maintenance ($3.0 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...
Cost-Based Pricing and Markups with Variable Costs Compu Services provides computerized inventory consulting. The office and...
Cost-Based Pricing and Markups with Variable Costs Compu Services provides computerized inventory consulting. The office and computer expenses are $400,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has $20 of variable costs. (a) If the company desires a profit of $140,000, what should it charge per hour? $Answer (b) What is the markup on variable costs if the desired profit is $160,000? c) If the...
American Apparel, Inc. has fixed annual operating costs of $325,000. The average selling price per                         unit...
American Apparel, Inc. has fixed annual operating costs of $325,000. The average selling price per                         unit is $45.00and the variable cost per unit is $34.00.  Based on this information, calculate the                         breakeven sales level in units.
Finch Company incurs annual fixed costs of $150,500. Variable costs for Finch’s product are $24.80 per...
Finch Company incurs annual fixed costs of $150,500. Variable costs for Finch’s product are $24.80 per unit, and the sales price is $40.00 per unit. Finch desires to earn an annual profit of $49,000. Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit.(Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units Gibson Company makes a...
Part A. Pigwidgeon Company charges a selling price of $30 per unit for its single product,...
Part A. Pigwidgeon Company charges a selling price of $30 per unit for its single product, incurs variable costs of $14 per unit, and total fixed costs of $280,000. What unit sales volume is necessary to earn a net income before tax of $40,000? Part B. Pigwidgeon Company charges a selling price of $30 per unit for its single product, incurs variable costs of $14 per unit, and total fixed costs of $280,000. What sales volume is necessary to earn...
The following data pertains to Logan Company: Selling price per unit $300.00    Variable expenses per unit...
The following data pertains to Logan Company: Selling price per unit $300.00    Variable expenses per unit    $180.00    Total fixed expenses $54,000    Tax rate 30% a.) Calculate the breakeven point in units. b.) How many units must Kinney sell to earn a before- tax profit of $24,000? c.) If fixed expenses increase by $6,000, and variable expenses decrease by 10%, how many units must be sold to earn an after-tax profit of $28,000?
XMobile Company sells car batteries to service stations for an average of $85 each. The variable...
XMobile Company sells car batteries to service stations for an average of $85 each. The variable cost of each battery is $48 and monthly fixed selling costs total $6,000. Other monthly fixed costs of the company total $7,000. Required: a. What is the breakeven point in batteries? b. What is the margin of safety, assuming sales total $32,000? c. What is the breakeven level in batteries, assuming variable costs increase by 20%? d. What is the breakeven level in batteries,...
​Richard's Framing Company provides the following information about its single product. Targeted operating income $58,000 Selling...
​Richard's Framing Company provides the following information about its single product. Targeted operating income $58,000 Selling price per unit $200 Variable cost per unit $40 Total fixed cost $344,000 What is the breakeven point in​ units? A.363 B.1,433 C.2,150 D.242
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT