e Chegg Study Guided So WileyPLUS Secure httpsedugenwil

e Chegg Study | Guided So WileyPLUS . ? ? Secure | https://edugen.wileyplus.com/edugen/lti/main.uni × X Assignment > Open Assignment CALCULATOR PRINTER VERSION RACK NFXT ASSIGNMENT RESOURCES Exercise 18-8 All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. 1,400 per month $.970 per month Depreclation Advertlsing Insurance Weed and feed materlals Direct labor Fuel Question 11 Question 12 2,000 per montih $15 per lawn $12 per lawn $ 3 per lawn All That Blooms charges 68 per treatment for the average single-family lawn. Determine the company\'s break-even point in number of lawns serviced per month Break-even point Brief Fxercise185 Boef Exercise-6 lawns LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE VIDEO: APPLIED SKILLS 18-1 Do it! Review 18-1 Determine the company\'s break-even point in dollars. (Round answer to o0 decimal places, e.g. 1,225.) Break-even point g Click if you would like to Show Work for this question: Open Show Work LFxercise 18-4 Exercise 18-5 y & SnsInG. All Rights Reserved, A Division of Version 4.24.6.2 :03 PM 6/11/2018 2

Solution

Contribution Margin = Unit Selling Price – Unit Variable Cost  = $68 – $30 = $38

Break-Even Units = Fixed Cost / Contribution Margin Per Unit = $4,370 / $38 = 115 lawns

Break-Even Dollars = 115 lawns * $68 = $7,820