Green Forever provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation .............$1,500

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Green Forever provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.

Depreciation .............$1,500 per month

Advertising ............ $200 per month

Insurance .............$2,000 per month

Weed and feed materials ....... $13 per lawn

Direct labor ............ $12 per lawn

Fuel ............... $2 per lawn

Green Forever 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 and

(b) Dollars.

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Accounting Tools for business decision making

ISBN: 978-0470095461

4th Edition

Authors: kimmel, weygandt, kieso

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Question Posted: Mar 01, 2012 11:43 PM

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Green Forever provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation .............$1,500

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a Contribution margin per lawn Contribution margin per lawn Contribution margin ratio 60 13 12 2 ...View the full answer

Accounting Tools for business decision making

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