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Sidana [21]
4 years ago
10

Carla Vista provides environmentally friendly lawn services for homeowners. Its operating costs are as follows Depreciation $1,4

00 per month Advertising Insurance Weed and feed materials Direct labor Fuel $350 per month $3,970 per month $14 per lawn $11 per lawn $3 per lawn Carla Vista charges $80 per treatment for the average single-family lawn. Determine the company's break-even point in number of lawns serviced per month.
Business
1 answer:
Novosadov [1.4K]4 years ago
4 0

Answer:

The company needs to provide 208.3 lawns serviced to breakeven or reach no profit and no loss position.

Explanation:

The fixed costs include Depreciation, Advertising and Insurance expenses.

Total fixed cost = $1400 Depreciation + $350 Advertising + $3970 Insurance

Total fixed cost = $5720 per month

Here variable costs are Weed & feed materials, Direct labor and Fuel Costs.

Total Variable cost = $14 Weed & feed materials + $11 Direct labor + $3 Fuel

Total Variable cost = $28 per lawn

The sales price is $80 and,

Contribution per unit is $52 per lawn ($80 S.P - $28 V.C)

Breakeven Point (Units) = Total Fixed Cost / Contribution per unit

Breakeven Point (Units) = $5720 / $28 per lawn = $208.3 lawns

The company needs to provide 208.3 lawns serviced to breakeven or reach no profit and no loss position.

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A - is the answer -what to produce
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2 years ago
The ________ is the length of time from the point when raw materials are purchased on account to the point when payment is made
Artist 52 [7]

The average payment period is the length of time from the point when raw materials are purchased on account to the point when payment is made to the supplier of the goods.

the question is incomplete .please read below to find the missing content

The ________ is the length of time from the point when raw materials are purchased on account to the point when payment is made to the supplier of the goods.

Select one:

a. cash conversion cycle

b. average collection period

c. average payment period

d. the average age of inventory

The average payment term is a metric used to represent the average number of days it takes a company to pay its suppliers the amount owed. Average Collection Time is a metric used to indicate the average number of days it takes a business to collect and cash accounts receivable.

Average Time To Pay (APP) is a metric that allows companies to see how long it takes on average to pay their suppliers. Businesses that track average payment terms have several advantages. However, the greatest benefit comes from the average payment period, which is the solvency ratio.

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8 0
2 years ago
Suncoast Healthcare is planning to acquire a new x ray machine that costs $200,000. The business can either lease the machine us
miskamm [114]

Answer:

a. what is Suncoast's current debt ratio?

debt ratio = liabilities / equity = $400,000 / $600,000 = 0.67

b. what would the new debt ratio be if the machine were leased? if it is purchased?

if X-ray machine is leased, debt ratio = $400,000 / $600,000 = 0.67

if X-ray machine is purchased, debt ratio = $600,000 / $600,000 = 1

c. is the financial risk of the business different under the two acquisition alternatives?

yes, because a higher debt ratio means that the company is under a higher financial stress since it has more outstanding loans, which increases the financial risk.

7 0
3 years ago
Your firm spends $ 5 comma 200 every month on printing and mailing​ costs, sending statements to customers. If the interest rate
Korvikt [17]

Answer:

The present value for eliminating this cost will be of $1,130,434.78

Explanation:

we solve for the present value of a perpetual annuity as this cost goes forever unless we change into electronically afterwich; they disappear entirely.

\frac{C}{r} =PV

\frac{5,200}{0.46} = 1,130,434.78

7 0
3 years ago
When several systems operate in parallel, total system capacity is the largest value of the individual system capacities. a. Tru
Fed [463]

Answer:

b. False

Explanation:

It is the opposite, when several systems operate in parallel, total system capacity is the lowest value of the individual system capacities.

For e.g., sectors A, B and C operate in parallel. Sector A can handle 100 units per hour, sector B can handle 150 units per hour and sector C can handle 75 units per hour. The system's capacity is 75 units per hour. If you want to operate at 100 units per hour, a queue will in sector C.

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