Green with Envy provides environmentally friendly lawn services for homeowners.
ID: 2389885 • Letter: G
Question
Green with Envy provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.Depreciation $1,808 per month
Advertising 226 per month
Insurance 2,486 per month
Weed and feed materials 5 per lawn
Direct labor 4 per lawn
Fuel 1 per lawn
Green with Envy charges $50 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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