Compute the Break$-$Even Point and Sales Target for a Multi$-$Service Company

Scenario: XYZ Landscaping offers two outdoor services: lawn care and pool maintenance. The company charges customers $$40$ per hour for each service. Lawn care has higher variable costs $($$$20$ per hour$)$ compared to pool maintenance $($$$12$ per hour$)$ due to fuel expenses and equipment maintenance. XYZ has $15$ employees who are paid a fixed monthly salary. The contribution format income statement for a recent month, covering $4,000$ hours of lawn care and $2,000$ hours of pool maintenance, is shown below:

ServiceLawn CarePool MaintenanceTotalSales$$160,000$$$80,000$$$240,000$Variable Costs$$80,000$$$28,000$$$104,000$Contribution Margin$$80,000$$$52,000$$$132,000$Fixed Expenses$$110,000$Operating Income$$22,000$

Required:

Contribution Margin $($CM$)$ Ratio: Calculate the overall CM ratio for the company.

Break$-$Even Sales: Compute the total sales required for the company to break even in sales dollars.

Weighted$-$Average CM per Hour: Calculate the weighted$-$average contribution margin per hour, based on the hours worked for both services.

Break$-$Even Point in Hours: Determine the overall break$-$even point for the company in terms of total hours worked.

Service Hours at Break$-$Even: At the break$-$even point, how many hours of lawn care and pool maintenance services must be provided for the company to break even?

Sales for Target Profit: Calculate the total sales required to achieve an after$-$tax profit of $$28,000,$ given a tax rate of $30\%.$