Question: Green Thumb Lawn Care Service provides lawn care service to

Green Thumb Lawn Care Service provides lawn care service to clients located throughout the region. It offers two levels of service— full service (watering, mowing, fertilizing, trimming, and edging) and budget service (fertilizing and mowing only). Green Thumb charges $ 1,500 per quarter for full service and $ 800 per quarter for budget service. Clients are asked to pay for services in advance. Green Thumb estimates that marketing costs average 1 percent of sales. In addition, Green Thumb estimates product- sustaining costs of $ 100 per full- service client per quarter and $ 50 per budget client per quarter. Green Thumb has developed the following estimates of clients per quarter for next year:
Required:
A. Prepare a sales budget by quarter for each Green Thumb level of service.
B. Prepare a marketing and distribution budget by quarter for Green Thumb.



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  • CreatedMarch 25, 2015
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