Multiple Choice
Alclear Pool & Spa presently provides a weekly maintenance service to 150 homes. Fixed costs are approximately $13 000 per quarter (13 weeks) . Customers pay $270 per quarter for the weekly service. All contracts are written for one quarter (13 weeks) . Now assume the contracts with customers are restructured such that the price per quarter is $300 and the contribution margin percentage is 57 per cent. Assume the tax rate is 25 per cent.
Determine the sales dollars (to the nearest $100) necessary to obtain an after-tax profit of $9600 per quarter.
A) $39 600
B) $45 300
C) $52 900
D) $90 200
Correct Answer:
Verified
Correct Answer:
Verified
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