Gardendale Associates offers landscape consultations, where they provide design advice and plans to residential customers. A single
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Question:
Gardendale Associates offers landscape consultations, where they provide design advice and plans to residential customers. A single consultation is priced at $750.00. The variable costs of a consultation total $330.00 consisting mostly of labor and supplies. Annual fixed costs are $140,700 Gardendale Associates is subject to an income tax rate of 24 percent.
Required:
What total revenue does Gardendale have to generate from selling consultations to break even?
What total revenue does Gardendale have to generate from selling consultations to earn an annual operating profit of $115,976 after taxes?
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