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Determine the company break-even point

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Reference no: EM132418509

Problem: FSU Landscaping Inc. provides landscape services for homeowners in the Fitchburg area.  

Its operating costs are as follows:

Depreciation $2,800 per month

Advertising $400 per month

Insurance $4,000 per month

Fertilizing Materials $24 per lawn

Direct Labor $20 per lawn

Auto & Equipment fuel $4 per lawn

FSU Landscaping Inc. charges $120 per treatment for the average single-family lawn.

Instructions:

Question 1: Determine the company's break-even point in number of lawns

Question 2: Determine the company's break-even point in dollars

Reference no: EM132418509

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