edgen. Kimmel, Accounting, 6 Exercise 18-8 (Part Level Submission) All That Bloo

Question

edgen. Kimmel, Accounting, 6 Exercise 18-8 (Part Level Submission) All That Blooms provides environmentally friendiy lewn services for homeowners. Its operating costs are as follows $ 1,500 per month $ 2,800 per month 1,100 per month $ 20 per lawn $16 per lawn $ 4 per lawn Advertising Insurance Weed and feed materials Direct labor Fuel All That Bilooms charges $ 90 per treatment for the average single-family lawn. (a) Your answer is correct Determine the company's break-even point in number of lawns serviced per month Break-even point Rudy awns APPLIED SKILLS (b) Your answer is incorrect. Try again. Determine the company's break-even point in dolars. (Round answer to O decimal places, e.g. 1,225.) Break-even point MacBook Air

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer    Statementshowing Computations Paticulars Amount Sales price per treatment                          90.00 Less Variable Expenses Wages and feed materials                          20.00 Direct labour                          16.00 Fuel                             4.00 Variable expenses per treatment:                          40.00 Contribution Margin = 90 - 40                          50.00 CM Ratio = 50/90 55.56% Fixed cost Depreciation                    1,500.00 Advertising                    2,800.00 Insurance                    1,100.00 Total fixed costs                    5,400.00 Break even per lawn = 5400/50                        108.00 Break even in $ = 5400/55.56% OR 108*90                    9,720.00

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