1)All That Blooms performs environmentally friendly lawn services for homeowners.Its operating cost 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.=

2)Kare Kars provides shuttle service between four hotels near a medical center and an international airport.Kare Kars uses two10-passenger vans to offer 12 round trips per day.A recent month's activity in the form of a cost-volume-profit income statement is shown below.

Fare revenues (1,440 fares)$36,000

Variable costs

Fuel$5,040

Tolls and parking$3,100

Maintenance$860$9,000

Contribution margin$27,000

Fixed cost

Salaries$12,700

Depreciation$1,300

Insurance$1,000$15,000

Net income$12,000

Instructions:

(a) Calculate the break-even point in

(1) Dollar's

2) Number of fares

(b)Determine the contribution margin at the break-even point.