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Sophie [7]
3 years ago
8

The Hendersons have just bought a home that requires some monthly yard maintenance. They are trying to decide if they should hir

e a professional lawn care service to maintain the property or do it themselves. Below are the costs associated with both options: Professional Service Option Do-It-Yourself Option $75 for the first month $250 lawnmower $45 per month after initial visit $135 edger Includes mowing and edging the lawn, trimming the bushes, and raking the leaves. $69 hedge trimmer $25 rake How long would it take before the Hendersons would recover their costs if they chose to do it themselves over the professional service
Business
2 answers:
GenaCL600 [577]3 years ago
7 0

Answer:

10 MONTHS

Explanation:

max2010maxim [7]3 years ago
5 0

Answer: 10 months

Explanation:

It would take the Hendersons 10months to recover their cost if they decide to do it themselves over the professional service.

Here is how;

Doing it themselves would cost -

$250 - For a lawnmower

$135 - For an edger

$69 - For a hedge trimmer

$25 - For a rake

Summing these up gives $479

It would cost the Hendersons $479 to purchase equipments to carry out their monthly yard maintenance themselves.

On the other hand, if they were to hire a professional service, it would cost

• $75 for the first month and

• $45 for subsequent months

So, $45 * 9months = $405

$405 + $75 (for the initial month) = $480

Comparing the $480 for a professional to the $479 it would cost to purchase equipment and do it themselves, it would take the Hendersons 10months to recover their cost if they decide to do it themselves over the professional service.

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Pacific Division has the following information:
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Answer:

it will be a net loss of 560,000

It is better to produce at a loss of 60,000 than a loss of 620,000

That's because, the Division cover a good portion of their allocate fixed cost.

Explanation:

The fixed expense are allocate cost. Are unavoidable cost It will remain even if the division is dropped.

The sales and variable cost will be zero.

\left[\begin{array}{cccc}&Continued&Discontinued&Differential\\Sales&1,200,000&0&-1,200,000\\Variable&-640,000&0&640,000\\Allocate cost&-620,000&-620,000&0\\Result&-60,000&-620,000&-560,000\\\end{array}\right]

After posting the values, we calculate the differential income.

In this case it will be a loss for 560,000

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