Exercise 18-8 All That Blooms provides environmentally friendly lawn services fo

Question

Exercise 18-8 All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation Advertising Insurane Weed and feed materials Direct labor Fuel 1,500 per month $1,876 per month $1,200 per month 10 per lawn $8 per lawn $2 per lawn All That Blooms charges$ 64 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 lawns LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE VIDEO: APPLIED SKILLS Determine the company's break-even point in dollars. (Round answer to 0 decimal places, e.g. 1,225.) Break-even point s

Explanation / Answer

Total fixed cost=1500+1876+1200= $4576 Contribution marginper unit=64-10-8-2= $44 Break-even point=4576/44= 104 Break even point =104*64= $6656

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