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Pina Colada provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation...

Pina Colada provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
Depreciation $2,600 per month
Advertising $200 per month
Insurance $12,860 per month
Weed and feed materials $15 per lawn
Direct labor $18 per lawn
Fuel $3 per lawn

Pina Colada charges $90 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

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Determine the company’s break-even point in dollars. (Round answer to 0 decimal places, e.g. 1,225.)
Break-even point $

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Answer #1
Depreciation 2600
Advertising 200
Insurance 12860
Fixed Cost 15660
Weed and Feed Materials 15
Direct Labor 18
Fuel 3
Variable Cost Per Unit 36
Price Per Service 90
Break even Point in Units = Fixed Costs ÷ (Price - Variable Costs) 290
Break even Point in in Dollars =290*90 26100
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