Exercise $4-7$ Break$-$Even Analysis $[$LO$5]$; Margin of Safety $[$LO$7]$

James House is planning on starting a cleaning services business but has not decided whether he should focus on residential clients or commercial clients. His estimates of revenue, variable expenses, and fixed expenses are shown below.

$\backslash$table$[[,,$Residential,Commercial,$],[$Revenue$,$$$,85$ per hour,$$,95$ per hour$],[$Variable expense,$$51,$per hour,$$,38$ per hour$],[$Fixed expense,$$8,075,$per month,$$10,260$ per month,$]]$

Required:

Calculate the number of break$-$even hours for residential clients and commercial clients. $($Round your answers to $1$ decimal place.$)$

$\backslash$table$[[$Break$-$even hours for residential clients,hours$],[$Break$-$even hours for commercial clients,hours$]]$

Assume that James decides to focus on commercial clients and his business is operating at $250$ hours per month. Calculate the margin of safety both in dollars and as a percentage of sales. $($Round percentage answer to $1$ decimal place.$)$

$\backslash$table$[[,,],[$Margin of safety $($in dollars$),,],[$Margin of safety as a percentage of sales,,$\%$