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Lab $1\mathrm{.}1$ Excel: Assessing Profitability of a Mowing Business

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Keywords: Practicing Excel Skills, Profitability

Decision$-$Making Context: A friend is retiring from a lawn$-$mowing business and is asking if you would like to take over his business. He is not trying to make money on the sale of the business. Instead, he is concerned with $(1)$ taking care of his existing customers and $(2)$ having someone take over existing contracts on equipment he has purchased.

He currently mows $50$ lawns each week and charges $$50/$lawn$.$ He mows lawns himself and has two people working for him. He supplies all equipment:

Truck: He has one truck that he purchased. The amount he still owes on the truck is $$20,000,$ and the payment is $$\frac{300}{?}$ month.

Mowers: He has three new riding mowers. He owes $$3,000$ on each and he pays $$\frac{100}{?}$ month for each one.

Other Equipment: All other equipment is paid for and in good working order, and he is willing to sell all of it to you for $$2,000($and you think it will last $20$ mowing months$).$ He estimates it will cost $$\frac{100}{?}$ month for maintenance of the truck, mowers, and other equipment.

You have a degree in landscape architecture and design, and you have been the groundskeeper at a golf course for the last five years. You believe with your knowledge and entrepreneurial ideas you could improve greatly on his business model. In summary, your costs are

Truck payment: $$\frac{300}{?}$ month

Mowers: $$\frac{300}{?}$ month

Other equipment: $$2,000$ to purchase now $($will last approximately $20$ months$)$

Chief mower makes $$\frac{15}{?}$ hour; staff worker makes $$\frac{10}{?}$ hour. Each staff worker can mow $1$ lawn$/$hour$.($Average $$\frac{13}{?}$ lawn in Scenario $1$ or average $$25$ per lawn in Scenario $2.)$

Maintenanre. $$10\frac{n}{m}th$

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