Question 1 All That Blooms provides environmentally friendly lawn services for h

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Question 1 All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation Advertising Insurance Weed and feed materials Direct labor $ 1,400 per month $3,454 per month $ 1,400 per month $13 per lawn $10 per lawn $3 per lawn All That Blooms charges $ 85 per treatment for the average single-family lawn Determine the company's break-even point in number of lawns serviced per month Break-even point lawns VIDEO SIMILAR EXERCESE VIDEO APPLIED SKILLS MacBook Air 30 a 886 . 5 command option

Explanation / Answer

Solution: 106

Working:

CM per lawn: 85 - (13 + 10 + 3) = 59

CM ratio : 59 / 85 = 69.41

Fixed cost: 1,400 + 3,454 + 1,400 = 6,254

Breakeven point in lawns: 6254 / 59 = 106

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