User Account

All Pages

What is the operating income

Assignment Help Accounting Basics
Reference no: EM131613927

Break-Even for a Service Firm

Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flower arrangements to professional offices. Jonah has fixed costs of $3,240 per month for office/greenhouse rent, advertising, and a delivery van. Variable costs for the plants, fertilizer, pots, and other supplies average $24 per job. GTC charges $60 per month for the average job.

Required:

1. How many jobs must GTC average each month to break even?

2. What is the operating income for GTC in a month with 88 jobs? Enter a net loss as a negative amount.

What is the operating income for GTC in a month with 95 jobs?

3. Jonah faces a tax rate equal to 25 percent. How many jobs must Jonah have per month to earn an after-tax income of $1,200? Round your answer to the nearest whole number of jobs.

4. Suppose that Jonah's fixed costs increase to $3,400 per month and he decides to increase the price to $75 per job. What is the new break-even point in number of jobs per month? Round your answer to the nearest whole number of jobs.

Reference no: EM131613927

Questions Cloud

Under the expectations theory-calculate the two year today : Suppose the 1-year rate is 2.5% today, and next year's 1-year rate is 3%. Under the Expectations Theory, calculate the 2 year today.
Concepts of social responsibility : Explain why it is important for managers to understand the concepts of social responsibility, ethics, and cultural differences when creating a meaningful?
Which of the two sites provides better marketing research : Write a five to seven page paper in which you: Determine which of the two sites provides better marketing research information in relation to the company.
Credit default swaps on mortgage backed securities : AIG sold a very significant number of CDS's (credit default swaps) on mortgage backed securities to financial institutions.
What is the operating income : What is the operating income for GTC in a month with 88 jobs? Enter a net loss as a negative amount. What is operating income for GTC in a month with 95 jobs
Determining the employee welfare : Brad is an air traffic controller who has had significant problems with high blood pressure. He has changed his diet, takes medication, but the problem persists
Find the velocity vector of the boat engine : The current in a river is pushing a boat in direction 25° north of east with a speed of 12 km/hr. The wind is pushing the same boat in a direction 80° south.
Identifying cost of sales problems : Given the situation described, how would you present your concern without creating panic among junior-level staff or revealing figures that would likely.
Discuss weather affects crime : Do you think that weather affects crime. Why or why not. Explain some of the ways that scholars think weather

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd