Green with Envy provides environmentally friendly lawn services for homeowners. Its operating costs are as...
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Green with Envy provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation $1,500 per month Advertising $200 per month Insurance $2,000 per month Weed and feed materials $13 per lawn Direct labor $12 per lawn Fuel $5 per lawn Green with Envy charges $55 per treatment for the average single-family lawn. Instructions: (a) Determine the variable cost per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Determine net income, assuming 150 lawns serviced are given in a month. (d) Compute the contribution margin ratio and the margin of safety ratio.
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