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All That Blooms performs environmentally friendly lawn services for homeowners. Its operating cost are as follows.
Depreciation $1,400 per month
Advertising $200 per month
Insurance $2,000 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.
Instructions:
Problem 1: Determine the company's break-even point in number of lawns serviced per month.
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