All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows....

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All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows....

All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.

Depreciation	$ 1,400	per month
Advertising	$ 2,745	per month
Insurance	$ 1,000	per month
Weed and feed materials	$ 19	per lawn
Direct labor	$ 15	per lawn
Fuel	$ 3	per lawn

All That Blooms charges $ 86 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

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

Break-even point

$

business accounting

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Answer 1

Answer #1

Total variable costs=Weed and feed materials+Direct labor+Fuel

=(19+15+3)=$37 per lawn

Total fixed cost=Depreciation+Advertising+Insurance

=1400+2745+1000=$5145

Contribution margin=Revenue-Variable cost

=(86-37)=$49 per lawn

Breakeven=Fixed expenses/Contribution margin

=(5145/49)=105 lawns

=(105*86)=$9030

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Answer 2

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All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows....

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