Green with Envy provides environmentally friendly lawn services for homeowners.

Question

Green with Envy provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation $2,765 per month Advertising 345 per month Insurance 3,802 per month Weed and feed materials 8 per lawn Direct labor 6 per lawn Fuel 2 per lawn Green with Envy charges $80 per treatment for the average single-family lawn. Determine the company's break-even point in (a) number of lawns serviced per month and (b) dollars. Break-even point in number of lawns Break-even point in dollars $

Explanation / Answer

THIS WILL BE HELPFUL FOR YOU AND PL RATE ME FIRST Total fixed cost per month = $1,808 +226 +2,486= $4520 per month Total variable cost per lawn =5 + 4 + 1 =10 per lawn Breakeven point = $4520/(50-10) =113 per month break-even point in dollars =113 *50 =$5650 BREAK EVEN POINT IN NUMBER OF LAWNS: 113 BREAK ...

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