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What is the number of lawns that must be serviced

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Computing contribution margin, breakeven point, and units to achieve operating income

This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 18-36 of Chapter 18. Lawlor Lawn Service currently charges $100 for a standard lawn service and incurs $60 in variable cost. Assume fixed costs are $1,400 per month.

Requirements

1. What is the number of lawns that must be serviced to reach break even?

2. If Lawlor desires to make a profit of $1,800, how many lawns must be serviced?

Reference no: EM13527357

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