ignment Exercise 11-8 (Part Level Submission) Bram Depreciation Advertising Insu

Question

ignment Exercise 11-8 (Part Level Submission) Bram Depreciation Advertising Insurance Weed and feed materials Direct labor Fuel ble provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. $3,000 per month $300 per month $4,620 per month $13 per lawn $41 per lawn $2 per lawn Bramble charges $100 per treatment for the average single-family lawn. Determine the company's break-even point in number of lawns serviced per month. Break-even point Show Work is REQUIRED for this question: Open Show Work lawns LINK TO TEXT LINK TO TEXT VIDEO: APPL

Explanation / Answer

(a) Contribution margin per lawn = $100 - ($13 + $41 + $2) = $44

Fixed costs = $3,000 + $300 + $4,620 = $7,920

Break-even point in lawns = Fixed costs / Contribution margin = $7,920 / $44 = 180 lawns

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