Question

All that blooms provides environmentally friendly lawn services for homeowners. its operating costs are as follows. depreciation $1400 per month advertising $200 per month insurance $2000 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. for the month ended july 31 2025, the company had total sales of 7200

a. What is the total operating cost for the month?
b. What is the total contribution margin for the month?
c. What is the total profit for the month?
d. How many single-family lawns were treated during the month?

Answer 1

The total operating cost for the month can be calculated by summing up all the operating costs and the number of lawns treated. The total contribution margin is the difference between total sales and total variable costs. The total profit is the difference between the total contribution margin and the total operating cost. The number of single-family lawns treated can be calculated by dividing the total sales by the price per treatment.

Step-by-step explanation:

The total operating cost for the month can be calculated by summing up all the operating costs mentioned. Given that:

Depreciation = $1400 per month
Advertising = $200 per month
Insurance = $2000 per month
Weed and feed materials = $12 per lawn
Direct labor = $10 per lawn
Fuel = $2 per lawn

Using the information provided, we can calculate:

Total Operating Cost = (Depreciation + Advertising + Insurance + Weed and feed materials + Direct labor + Fuel) x Number of lawns treated

For b., the total contribution margin for the month can be calculated by subtracting the total variable costs from the total sales:
Total Contribution Margin = Total Sales - (Weed and feed materials + Direct labor + Fuel)

To find the total profit for the month, we need to subtract the total operating cost from the total contribution margin:
Total Profit = Total Contribution Margin - Total Operating Cost

To calculate how many single-family lawns were treated during the month, we can use the total sales and the price per treatment:
Number of Lawns Treated = Total Sales / Price per Treatment