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.
Answer:
20.875
Explanation:
18+24+17+21+24+16+29+18=167/8=20.875
Answer:
price
Explanation:
supplier will be willing and able to sell products for high prices as their able to make a good profit
Answer:
Net operating income would be decreased by $137,000
Explanation:
The computation is shown below:
Sales $490,000
Less: Variable expenses ($221,000)
Contribution margin $269,000
Less
Fixed manufacturing expenses ($90,000)
Fixed selling and administrative expenses ($42,000)
Net income $137,000
If the product H58S were dropped than the net operating income would be decreased by $137,000