Determine the company break-even point

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Problem - Sandhill provides environmental friendly lawn services for homeowners. Its operating costs are as follows.

Depreciation $1,500 per month

Advertising $250 per month

Insurance $3,530 per month

Weed and feed materials $25 per lawn

Direct labor $6 per lawn

Fuel $1 per lawn

Sandhill charges $80 per treatment for the average single-famiIy lawn.

Required -

a) Determine the company's break-even point in number of lawns serviced per month.

b) Determine the company's break-even point in dollars.

 

Reference no: EM132616864

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