Landscaping Break Even Analysis

Description:

1. You run a landscaping business. You rent a truck and machinery for $600 per month, a garage to house it for $1,200 per year. You pay a part-time bookkeeper $3,600 a year to keep track of your money. Two workers cost you $4,000 in total a month. 20 corporate clients each pay you $2,400 a year to maintain their grounds. There are no other expenses to pay other than gas and oil for the truck and machinery which will depend on the number of individual customers you go to - about $10 per trip. As you are losing money you decide you need Individual customers that you visit 4 times a month. They pay you $100 per visit. If advertising to get/keep customers cost you $1,000 a month, how many individual customers do you need to break even each month?

Markup
Price	$40.00
Cost	$30.00
What is Markup

Revenues
Cost of Goods Sold		$7,000	$8,000
Gross Profit		$4,500	$5,000
S G & A		$2,500	$3,000
Operating Expenses		$600	$900
		$900	$1,000
Operating Profit		$1,000	$1,100

Answer rating: 100% (QA)

Step 13 Fixed cost Per month Rent of truck and machinery 600 Rent of gara... View the full answer