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James House is planning on starting a cleaning services business but has not decided whether...

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Accounting

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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. Revenue Variable expense Fixed expense Residential $ 95 per hour $ 57 per hour $11,970 per month Commercial $ 105 per hour $ 42 per hour $15, 120 per month Required: 1. Calculate the number of break-even hours for residential clients and commercial clients. (Round your answers to 1 decimal place.) hours Break-even hours for residential clients Break-even hours for commercial clients hours 2. Assume that James decides to focus on commercial clients and his business is operating at 260 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 %

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