Help! CALCULATOR PRINTER VERSTON NMENT RCES HW Part 2 ercise 18-5 Exercise 18-8

Question

Help! CALCULATOR PRINTER VERSTON NMENT RCES HW Part 2 ercise 18-5 Exercise 18-8 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 Fuel $ 1,500 per month $ 4,804 per month $ 1,200 per month rise 19-9 Score w Results by Objective $7 per lawn $6 per lawn $1 per lawrn All That Blooms charges 81 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 LINK TO TEXT LINK TO TEXT VIDEOI SIMILAR EXERCISE VIDEO: APPLIED SKILLS Determine the company's break-even point in doliars. (Round answer to O decimal places, e.g. 1,225.) Break-even point LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE VIDEOL APPLIED SKILLS

Explanation / Answer

Answer:-The company break even point in number of lawns serviced per month:-

Fixed cost/Contribution margin per lawn

=$7504/$67 per lawn =112 lawns

Where:- Contribution margin per lawn=Amount charge for per lawn- variable cost per lawn

=$81 per lawn – ($7+$6+$1)

=$67 per lawn

Total fixed cost =$1500+$4804+$1200 = $7504

Total variable cost per lawn =$7+$6+$1 =$14 per lawn

The company break even point in dollars =Fixed cost/ Contribution margin ratio

=$7504/82.72%

=$9072

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