E18-8 Green Forever provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
|
Depreciation |
$1,500 per month |
|
Advertising |
$200 per month |
|
Insurance |
$2,000 per month |
|
Weed and feed materials |
$13 per lawn |
|
Direct labor |
$12 per lawn |
|
Fuel |
$2 per lawn |
Green Forever 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.