Determine the price that judith would have to charge to

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Reference no: EM13599297

Kristina Alley owns a home inspection business, offering her services to homeowners. She currently charges $180 per inspection but wants to know if her fee should be raised. She is interested in an analysis of the appropriateness of her current price. She has provided the following data from the past six months:

Month Number of Inspections Overhead Costs

March 50 $3,280
April 64 3,555
May 76 3,789
June 90 4,044
July 97 4,101
August 110 4,120

Kristina takes her daughter with her on all inspections and pays her $40 per inspection. Kristina estimates an average 60 inspections per month for the next six months.

1. Prepare an analysis showing Kristina's estimated total cost per inspection
2. Determine Judith's breakeven point
3. Determine number of inspections per month Kristina must do to generate a profit of $5,000 per month.
4. Determine the number of inspections per month Kristina must do to generate a profit of $100 per month.
5. Determine the price the Kristina would have to charge to generate a profit of $100 per inspection if she does 60 inspections per month
6. Determine the price that Kristina would have to charge to generate a profit of $100 per inspection if she does 50 inspections per month.
7. Determine the price that Kristina would have to charge to generate a profit of $100 per inspection if she does 75 inspections per month
8. Determine the price that Judith would have to charge to generate a profit of $5,000 per month plus $100 per inspection if she does 75 inspections per month.

Reference no: EM13599297

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