Question

All that blooms provides environmentally friendly lawn services for homeowners. its operating costs are as follows. depreciation $ 1,400 per month advertising $ 1,968 per month insurance $ 1,000 per month weed and feed materials $ 16 per lawn direct labor $ 12 per lawn fuel $ 3 per lawn all that blooms charges $ 70 per treatment for the average single-family lawn. (a) determine the company's break-even point in number of lawns serviced per month. break-even point

Answer 1

Blooms will need to service 112 lawns to break even on their costs.

Break even point is where costs=sales

add up all your costs, make them equal to sales amount times number of lawns (x) and solve for x to see how many lawns it will take to break even on costs.

1400 + 1968 + 1000 + 16x + 12x + 3x = $70x

$4368 + $31x = $70x (subtract 31x from both sides)

4368 = 39x (now divide by 39 to solve for x)

x= 112 lawns