Cost Volume Profit

All that Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
Depreciation$1,400 per month
Advertising$200 per month
Insurance$2,000 per month
Weed and feed materials$12 per lawn
Direct Labor$10 per lawn
Fuel$2 per lawn

All That Blooms charges $60 per treatment for the average single-family lawn

Instructions

Determine the company's break-even point in (a) number of lawns serviced per month and (b) dollars

Solution

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