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Cost-Volume Profit

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The below information is the operating costs for a lawn service company:

depreciation $1500/month
advertising $200/month
insurance $2,000/month
weed and feed materials $13/lawn
direct labor $12/lawn
fuel $2/lawn

The company charges $60 per treatment for an average single-family lawn.

Please find the break-even point in (a)number of lawns serviced per month and (b)dollars?

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Solution Summary

The solution goes into a great amount of detail regarding the question being asked about the break even point. Step-by-step explanation is provided for each part of the question which makes it very easy to follow along for anyone with just a basic understanding of the concepts. Overall, an excellent response to the question being asked.

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Total Fixed Costs = 1,500+200 + 2,000 = $3,700 per month

Total Variable ...

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