break even sales sales for target pro t health temp company is a placement agency fo 4142671

February 11, 2021/in Business Homework Help Online /by Joseph

Break-Even Sales: Sales for Target Pro?t Health-Temp Company is a placement agency for temporary nurses. It serves hospitals and clinics throughout the metropolitan area. Health-Temp Company believes it will place temporary nurses for a total of 23,500 hours next year. Health-Temp charges the hospitals and clinics $90per hour and has variable costs of $75.60 per hour (this includes the payment to the nurse). Total ?xed costs equal $321,000. Required: 1. Calculate the contribution margin per unit and the contribution margin ratio.2. Calculate the sales revenue needed to break even.3. Calculate the sales revenue needed to achieve a target pro ? t of $100,000.4. What if Health-Temp had target operating income (pro ? t) of $110,000? Would sales revenue be larger or smaller than the one calculated in Requirement 3? Why? By how much?

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