Question

All That Blooms performs 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.

Instructions
Determine the company’s break-even point in
(a) Number of lawns serviced per month
(b) Dollars.



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  • CreatedJanuary 30, 2014
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