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All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows....

All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.

Depreciation $1,400 per month
Advertising $200 per month
Insurance $2,000 per month
Weed and feed materials $12 per lawn
Direct labor $10 per lawn
Fuel $2 per lawn


All That Blooms charges $60 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

enter the break-even point in number of lawns serviced per month

 lawns

  

  

Determine the company’s break-even point in dollars.

Break-even point

$enter the break-even point in dollars

Solutions

Expert Solution

Breakeven point = 100 lawns

Breakeven point in dollar = $6000

Working

A Sale Price per unit $                   60.00
B Variable Cost per Unit (12+10+2) $                   24.00
C=A - B Unit Contribution $                   36.00
D Total Fixed cost (1400+200+2000) $             3,600.00
E=D/C Breakeven point in units                           100
F= E x A Breakeven in sales dollars                 6,000.00

ekkarill92 answered 2 years ago
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