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

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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