Question: docs.google.com Untitled document - Google De ools Add-ons Help at - Arial All changes saved in Drive 11 - BIVAD EEEEE 2. Potter Janitorial Services
docs.google.com Untitled document - Google De ools Add-ons Help at - Arial All changes saved in Drive 11 - BIVAD EEEEE 2. Potter Janitorial Services provides cleaning services to homes and offices. Their financial information for the past year follows: Total Home $250,000 205,000 Office $425,000 318,750 $675,000 523,750 Revenue Variable expenses Common Fixed Expenses: Billing & Accounting Owner's Salary Other miscellaneous expenses 25,000 90,000 32,000 $4,250 Operating Income (01) 101) Requirements: a. What are the contribution ratios for Home and office segments and what is the overall contribution margin ratio? b. What is Potter's break even in sales dollars? C. Assuming the mix of Home and Office services does not change, what amount of revenue will be needed for owner to earn a salary of $125,000 and have Ol of $4,000
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