Question - Katie and Holly founded Hokies Plumbing Company after graduating from college. The wanted to be competitive, so they set their rate for house call at a modest $100.00.
After paying the company's gas and other variable cost of $60.00 the women thought that would be enough profit.
They set their salaries at $100,000 each. There was no fixed cost at all.
House calls rate: $100
Variable cost: $60.00
Salaries: $100,000
Calculate the number of house calls that Hokies Plumbing must make to break even?