Determine the price that judith would have to charge to

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

Questions Cloud

When inventories are valued at a lower of costs or market : when inventories are valued at a lower of costs or market it would result in the allowance of a deduction for the

Obtain the necessary data and perform two 2 actual : obtain the necessary data and perform two 2 actual comparisons. use real and current data and information from 2

When inventories are valued at a lower of costs or market : when inventories are valued at a lower of costs or market it would result in the allowance of a deduction for the

What metrics can be used to assess improvement or : 1. what is meant by capital structure?2. what metrics can be used to assess improvement or deterioration in the capital

Determine the price that judith would have to charge to : kristina alley owns a home inspection business offering her services to homeowners. she currently charges 180 per

Nancy tercek the financial vice president and margaret : nancy tercek the financial vice president and margaret lilly the controller of romine manufacturing company are

Smithson corporation unadjusted trial blanace includes the : smithson corporation unadjusted trial blanace includes the following balances asume normal balanceaccounts receivable

Carson company on july 15 sells merchandise on account to : carson company on july 15 sells merchandise on account to tayler co. for 1000 terms 210 n30. on july tayler co. returns

The office acquired business furniture for 15000 on : andrea scarlett is a realtor. she organized her business as a proprietorship andrea scarlett realtor by investing 19000

User Account

All Pages