All categories

2 years ago

Blossom provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.

Business

1 answer:

Elina [12.6K]2 years ago

8 0

Answer:

Break-even point = 110 lawns & Break-even sales point = $8,800

Explanation:

Total fixed costs = Depreciation + Advertising + Insurance

Total fixed costs = 1,400 + 200 + 3,680

Total fixed costs = $5280/month

Total variable cost per unit = Weed + Direct labor + Fuel

Total variable cost per unit = 13 + 16 + 3

Total variable cost per unit = $32/lawn

Contribution margin ratio = (Sales per unit - variable cost per unit) / sales per unit

Contribution margin ratio = (80 - 32) / 80

Contribution margin ratio = 0.6

Contribution margin ratio = 60%

Break-even sales = Fixed costs / contribution margin ratio

Break-even sales = $5280 / 60%

Break-even sales = $8800

Break-even sales units = Break-even sales / sales per unit

Break-even sales units = 8800 / 80

Break-even sales units = 110 lawns

Break-even point = 110 lawns & Break-even sales point = $8,800

You might be interested in

According to the text, several new technologies are expected to have dramatic impacts on marketing. Among those cited are

Zarrin [17]

Answer:

Internet of Things, autonomous vehicles, wearable technology, and artificial intelligence.

Explanation:

Among those cited are the Internet of Things, autonomous vehicles, wearable technology, and artificial intelligence. All of these are innovations that work together to make smart technology, these are technologies that use artificial intelligence and interconnect between one another and the internet in order to communicate, share, analyze, and store valuable information while at the same time learning and adapting.

8 0

3 years ago

You would expect a bond of an Eastern European government to pay interest rate as compared to a bond of the U.S. government. You

Olenka [21]

Answer:

1) A bond of an Eastern European government

2) A bond that repays the principal in year 2040

3) A bond from a software company you run in your garage

4) A bond issued by the federal government

Explanation:

Term: Long-term bonds are riskier than short-term bonds because holders of long-term bonds have to wait longer for repayment of principal. To compensate for this risk, long-term bonds usually pay higher interest rates than short-term bonds.

Credit risk: When bond buyers perceive that the probability of default is high, they demand a higher interest rate as compensation for this risk.

Tax treatment: When state and local governments issue bonds, the bond owners are not required to pay federal income tax on the interest income. Because of this tax advantage, bonds issued by state and local governments typically pay a lower interest rate than bonds issued by corporations or the federal government.

6 0

3 years ago

A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is

cricket20 [7]

Answer:

If the yield to maturity remains at 8%, then the bond's price will decline over the next year.

Explanation:

When the bonds sells at a premium it means that the coupon payment is greater than the yield to maturity, which means that the income generated by the bond is greater than return required by the investor and because of this the bond sells at a premium because the investor is willing to pay more for the bond as it offers more income than its required rate of return. With a premium the bond price increases to a point where the coupon and required return become equal. When the bond has 10 years to maturity it means that it will give 10 equal payments to the investor which will be greater than the investors required return therefore the investor will be willing to pay a higher price for the bond, as the maturity decreases the number of payments which will be higher than the required return also decrease, so for example if there are 5 years to maturity then the bond will pay 5 payments that are greater than the required return so the investor will be paying a lower premium compared to when he was getting 10 payments that payed more than his required return.

8 0

2 years ago

A representative meets a potential client at a convention. The client is interested in an investment giving life-long income, an

Gwar [14]

Answer:

The representative should talk to the manager to determine if there was a Know Your Customer violation

Explanation:

5 0

2 years ago

Oriole Company sells merchandise on account for $7800 to Sunland Company with credit terms of 2/13, n/30. Sunland Company return

Stella [2.4K]

Answer:

a. $6468

Explanation:

Calculation for the amount of the check

Based on the information given we were told that Oriole Company sells merchandise on account for the amount of $7800 to Sunland Company with credit terms of 2/13, n/30 in which Sunland Company returns the amount of $1200 of merchandise that was damaged which means that the amount of the check will be calculated as:

Amount of the check=[($7,800 - $1,200) *(100%-2%) ]

Amount of the check=$6,600*0.98

Amount of the check=$6,468

Therefore the Amount of the check will be $6,468

7 0

2 years ago