Homework Answers
Total fixed costs=Depreciation+Advertising+Insurance
=(1500+100+4035)=$5635
Total variable cost=Weed and feed materials+Direct labor+Fuel
=(17+3+1)=$21 per lawn
Contribution margin=Revenue-Variable cost
=(70-21)=$49 per lawn
Hence breakeven=Total fixed cost/Contribution margin
=(5635/49)=115 lawns
=(115*70)=$8050
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Insurance
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Depreciation
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Weed and feed materials
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Direct labor
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Fuel
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lawn.
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serviced per month.
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Determine the company’s break-even point...
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for homeowners. Its operating costs are as follows.
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Insurance
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Weed and feed materials
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Direct labor
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