Recording the variable costs


Response to the following problem:

High Desert Campgrounds (HDC) rents spaces for recreational vehicles (RVs) by the day. HDC charges $15 per day for a space. The variable costs (including cleaning, maintenance, and supplies) are $7 per day. The fixed costs of HDC are $60,000 per year. HDC is subject to a tax rate of 35 percent on its income.

If a "unit" is one space rented for one day, how many units does HDC have to rent annually to earn $48,750 after taxes?

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Taxation: Recording the variable costs
Reference No:- TGS02124283

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