n Assignment CALCULATOR FULL SCREENPRINTER VERSION OURCES Advertising Insurance
ID: 2340664 • Letter: N
Question
n Assignment CALCULATOR FULL SCREENPRINTER VERSION OURCES Advertising Insurance Weed and feed materials Direct labor Fuel $ 1,400 per month 970 per month $ 2,000 per month 15 per lawn $ 12 per lawn $3 per lawn 5-5 All That Blooms charges $ 68 t for the average single-family lawn. per treatmen by Study ] Your answer is incorrect. Try again. Determine the company's break-even point in number of lawns serviced per month. Break-even point 112 lawns VIDEO. SIMILAR EXERCISE VIDEO: AruED Suus Your answer is incorrect. Try again Determine the company's break-even point in dollars. (Round answer to O declmal places, e.g. 1,225) Break-even point 3472 ment I Privacy Policy 1 8.2000-2018 John Wiley.&.Sons. Inc. All Rights Reserved. A Division of John.Wiley.&.SonsIncExplanation / Answer
Sales price per treatment of lawn = $68
Variable cost per treatment of lawn = Weed & feed material + direct labor + fuel
= $15 + $12 + $13
= $ 30
Contribution per treatment of lawn = Sale price - Variable cost
= $68 -$30
= $38
Break even point of lawn = Fixed cost / contribution per treatment
Fixed cost = Depreciation + advertising + insurance
= $1400 + $970 + $2000
= $4370
Break even point = Fixed cost / contribution per treatment of lawn
= $4370 / $38
= $115 per lawn
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