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6 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 towed expenses are shown below 5 pot Revenue Variable pene Fixed expense $ 35 per hour 1 21 per hour $ 3,050 per month 5 45 per hour 15 per hour 12,035 per month Dos Required: 1. At what volume of hours per month will James be indifferent between focusing on residential versus commercial clients References Naher al hours 2. Calculate the number of break-even hours for residential clients and commercial clients (Round your answers to decimal place) Break-even hours for residential clients Break-even hours for commercial clients hours hours 6 Number 5 points 2. Calculate the number of break-even hours for residential clients and commercial clients. (Round your answers to 1 decimal place.) ebook Prime References Break even hours for residential clients Break-even hours for commercial clients hours hours 3. Assume that James decides to focus on commercial clients and his business is operating at 130 hours per month Calculate the margin of safety both in dollars and as a percentage of sales (Round percentage answer to 1 decimal place.) Margin of safety (in dollars) Margin of safety as a percentage of sales 5

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