Explore BrainMass

Explore BrainMass

    Cost-Volume Profit

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The below information is the operating costs for a lawn service company:

    depreciation $1500/month
    advertising $200/month
    insurance $2,000/month
    weed and feed materials $13/lawn
    direct labor $12/lawn
    fuel $2/lawn

    The company charges $60 per treatment for an average single-family lawn.

    Please find the break-even point in (a)number of lawns serviced per month and (b)dollars?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:56 pm ad1c9bdddf
    https://brainmass.com/business/cost-volume-profit-analysis/cost-volume-profit-break-point-308922

    Solution Preview

    Total Fixed Costs = 1,500+200 + 2,000 = $3,700 per month

    Total Variable ...

    Solution Summary

    The solution goes into a great amount of detail regarding the question being asked about the break even point. Step-by-step explanation is provided for each part of the question which makes it very easy to follow along for anyone with just a basic understanding of the concepts. Overall, an excellent response to the question being asked.

    $2.19

    ADVERTISEMENT