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If you have 11 customers, what is the minimum number of times you need to plow per customer each season to break even, given that you charge $75 per job and your monthly expenses are $400?

a) 3 times
b) 4 times
c) 5 times
d) 6 times

User Kenorb
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1 Answer

4 votes

Final answer:

To break even, the student must plow at least 6 times per customer each season, calculated by dividing the monthly expenses by the price per job and rounding up.

Step-by-step explanation:

To find the minimum number of times you need to plow per customer each season to break even, let's perform a calculation. First, we'll calculate your total expenses per month, then divide that by the amount you earn per job, and finally determine how many jobs you need to cover the expenses.Given that the monthly expenses are $400 and you charge $75 per job, your total expenses for one month represent a fixed cost. To break even, the revenue from the jobs must equal this cost. To find out how many jobs you need to break even, divide your monthly expenses by the price charged per job Monthly Expenses / Price Charged per Job = Number of Jobs to Break Even $400 / $75 = Approximately 5.33 Since you can't perform a fraction of a job, you must round up to the next whole number, which means you will need to plow at least 6 times per customer to break even.The correct answer is d) 6 times.

User Hlib Derbenov
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