Chrome File Edit View History Bookmarks People Window Help o. in Notifica x VW P

Question

Chrome File Edit View History Bookmarks People Window Help o. in Notifica x VW Palo Altx XM Inbox - x CHAPTIX XC Westerv x C All That x A Sawasc X X 7 Qualitx O * P *) 99% Sat 9:17 PM Q = M WileyPL X C Naylor ( x ' C Chegg: xa e O- * @CC a : c A Secure | https://edugen.wileyplus.com/edugen/student/mainfr.uni Wiley PLUS: MyWiley PLUS I Help | Contact Us | Log Out WilevPLUS Weygandt, Financial & Managerial Accounting, 2e Financial and Managerial Accounting (ACCTG 10 and 11) A+ MESSAGE MY INSTRUCTOR STANDARD VIEW PRINTER VERSION ( BACK NEXT Exercise 19-8 All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation Advertising Insurance Weed and feed materials Direct labor Fuel $ 1,400 per month $ 3,090 per month $ 1,600 per month $ 14 per lawn $ 11 per lawn $2 per lawn All That Blooms charges $ 85 per treatment for the average single-family lawn. * Your answer is incorrect. Try again. 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 * Your answer is incorrect. Try again. Determine the company's break-even point in dollars. (Round answer to o decimal places, e.g. 1,225.) Break-even point LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE VIDEO: APPLIED SKILLS

Explanation / Answer

BEP in No.of lawns=
Fixed cost/sales price per unit-variable cost per unit

=$1400+$3090+$1600/$85-($14+$11+$2)
=$6090/$58
=105 lawns

BEP in Dollars =
Fixed cost/contribution margin
=$6090/($58/85)
=$6090/68%
=$8956

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