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D 3. Compute the weighted average CM per hour for the company. Lawn Garden Maintenance Maintenance Total 4. Calculate the overall break-even point for the company in hours. 5. At the overall break-even point in total hours, how many hours of each service must be provided for the compan to break-even? Lawn Garden Maintenance Maintenance Total break-even hours Sales mix Servise break-even hours 6. Calculate the overall sales in dollars required to earn an after-tax profit of $84,000 if the tax rate is 30%. H Question 7 Compute the Break-Even Point for a Multi-Service Company; Compute Sales for a Target Profit Fairview Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garde maintenance. The company charges customers $30 per hour for each type of service, but lawn maintenance has higher variable costs ($14 per hour) than garden maintenance ($6 per hour) because of fuel expenses incurred to operate lawn-mowing equipment. All employees are paid a fixed monthly salary. A contribution format income statement for a recent month for the two services appears below. During the month, 12,000 hours of lawn maintenanc services and 4,000 hours of garden maintenance were provided: Sales Variable expenses Contribution margin Fixed expenses Operating income Lawn Garden Maintenance Per Hour Per Hour Maintenance Total $ 360,000 $ 30 $ 120,000 $ 30 $ 480,000 168,000 14 24,000 6 192,000 192,000 16 96,000 24 288,000 216,000 $ 72,000

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