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Jordan is developing a business plan for a residential building inspection service he may start. Rent and utilities for the office will cost $1,500 per month. The fixed costs for a vehicle would be $325 per month. He estimates that the variable office costs will be $100 per inspection and $50 per inspection for commuting. Jordan will also spend $150/month to lease a computer and $275/month for advertising.

a) If he charges $275/inspection, how many inspections before he can start making a profit?

b) What monthly revenue will he be making at break-even?

c) What will be his profit/loss he makes an average of 15 inspections per month?

d) How many inspections per month should he make in order to be able to have a salary of $5,000/month?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9971352

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