Katie and Holly founded Hokies Plumbing Company after graduating from college. They wanted to be competitive, so

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Katie and Holly founded Hokies Plumbing Company after graduating from college. They wanted to be competitive, so they set their rate for house calls at a modest $100. After paying the company’s gas and other variable costs of $60, the women thought there would be enough profit. Because they were ready to live life a bit, they set their salaries at $100,000 each. There were no other fixed costs at all.

Required
Calculate the number of house calls that Hokies Plumbing must make to break even.

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Managerial Accounting A Focus on Ethical Decision Making

ISBN: 978-0324663853

5th edition

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

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