Solution-Calculate the breakeven sales level for five per

Calculate the breakeven sales level for five per lawn price

Reference no: EM132738984

A suburban lawn-care company has nonincremental fixed costs of $6,000 per month. It currently services 400 lawns per month at an average price of $30 per lawn. The company's variable costs are $19 per lawn. If the company's total sales increase beyond 550 lawns per month (i.e., 150 more lawns than are currently serviced), new equipment would have to be purchased that would involve incremental fixed costs of $760 per month.

Problem (a) Calculate the breakeven sales level for a $5 per lawn price increase. Show your work.

Problem (b) Calculate the breakeven sales level for a $5 per lawn price decrease. Show your work

Reference no: EM132738984

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Calculate the breakeven sales level for five per lawn price

Reference no: EM132738984

Reference no: EM132738984

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