All categories

3 years ago

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

Business

1 answer:

Elina [12.6K]3 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

Q 6.29: Accurate Auditing is conducting an inventory count for Blake Industries. Blake intermingles empty boxes with full boxes

Rasek [7]

Answer:

The asset would have been overestimated

Explanation:

An inventory account deals with assigning values to all the items or goods that are involved in the production process ranging from raw goods, processed goods to market-ready goods.

<em>An inventory represents an asset to a company. Hence, the presence of empty boxes in the storeroom if otherwise taken as full boxes will lead to an overestimation of the asset unless they are discovered.</em>

3 0

3 years ago

A thief steals an ATM card and must randomly guess the correct three-digit pin code from a 9-key keypad. Repetition of digits

ololo11 [35]

Answer:

The thief has a 0.11% probability of hitting the pin code on the first try.

Explanation:

Simply, if the ATM card has a 3-digit code that can be repeated, and the board has 9 numbers (for example, from 1 to 9), we must start from the smallest number that could be formed with these numbers to the highest number that these numbers could also compose, which in the case would be 111 and 999. Then, 889 different numbers could be formed (it is the distance between 111 and 999), with which the possibility of hitting the key to the first attempt would be 1 in 889 times, or 1/889.

To take the probability to a percentage, we must know that 889 / 8.89 gives 100. Therefore, dividing 1 / 8.89 we will know the percentage of probabilities of hitting the key on the first attempt: 1 / 8.89 = 0.11.

This shows us that the thief has a 0.11% probability of hitting the key on the first try.

8 0

3 years ago

The index weighting that results in portfolio weights shifting away from securities that have increased in relative value toward

Sliva [168]

Answer: B. Fundamental weighting.

Explanation:

A fundamentally weighted index refers to a type of equity index whereby the components that are chosen based on the fundamental criteria like the dividend rates, book value, revenue, dividend rates, etc.

Fundamental weighting is the index weighting which results in portfolio weights shifting away from securities that have increased in relative value toward securities that have fallen in relative value whenever the portfolio is rebalanced.

3 0

2 years ago

Which of the following are true if you pay only the minimum amount each month towards your credit card bill?

Stels [109]

You will have a higher interest and will be in debt for longer

6 0

3 years ago

Mike’s Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. I

Stolb23 [73]

Answer:

Mike's Motors Corp.

Cash Budget for July, August, and September:

July August September Total

Beginning balance $32,000 $30,000 $30,000 $32,000

Cash receipts 83,000 109,000 148,000 340,000

Bank borrowings 26,000 0 0 26,000

Total receipts 141,000 139,000 178,000 $398,000

Cash Payments 111,000 97,900 125,400 334,300.00

Interest 520 308.40 828.40

Loan repayment 10,580 15,420 26,000.00

Total payments 111,000 109,000 141,128.40 361,128.40

Minimum cash balance 30,000 30,000 36,871.60 36,871.60

Explanation:

a) Data and Calculations:

Cash Receipts Cash Payments

July $ 83,000 $ 111,000

August 109,000 97,900

September 148,000 125,400

Minimum cash balance = $30,000

Interest on borrowings = 2% per month

July ending:

Borrowing to maintain minimum cash balance = $26,000

Interest for August = $520 ($26,000 * 2%)

August ending:

Loan balance = $15,420 ($26,000 - $10,580)

Interest for September = $308.40 ($15,420 * 2%)

8 0

3 years ago