Homework Answers
Break even point = Fixed cost / Contribution margin per unit
Fixed cost per month = Depreciation + Advertising + Insurance
= $1400 + $300 + $2920
= $4620
Contribution margin per unit = Sales price - Variable cost per unit
= $80 - ($22+$12+$2)
= $80 - $36
= $44
Break even point = $4620 / $44
= 105 lawns
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Advertising
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per month
Insurance
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per month
Weed and feed materials
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per lawn
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per lawn
Fuel
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Determine the company’s break-even point...
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Depreciation
$1,400
per month
Advertising
$1,068
per month
Insurance
$1,900
per month
Weed and feed materials
$11
per lawn
Direct labor
$8
per lawn
Fuel
$2
per lawn
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single-family lawn.
Determine the company’s break-even point in number of lawns
serviced per month.
Break-even point
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Pina Colada provides environmentally friendly lawn services for
homeowners. Its operating costs are as follows.
Depreciation
$2,600
per month
Advertising
$200
per month
Insurance
$12,860
per month
Weed and feed materials
$15
per lawn
Direct labor
$18
per lawn
Fuel
$3
per lawn
Pina Colada charges $90 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
Determine the company’s break-even point...
All That Blooms provides environmentally friendly lawn services
for homeowners. Its operating costs are as follows.
Depreciation
$1,400
per month
Advertising
$1,068
per month
Insurance
$1,900
per month
Weed and feed materials
$11
per lawn
Direct labor
$8
per lawn
Fuel
$2
per lawn
All That Blooms charges $63 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
Determine the company’s...
Question 4 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 $ 2,745 per month $ 1,000 per month $ 19 per lawn $ 15 per lawn $ 3 per lawn All That Blooms charges $ 86 per treatment for the average single-family lawn. (a) Determine the company's break-even point in number of lawns serviced per month Break-even point...
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