You earned money painting houses over summers for the past five years and have saved $75,000. As

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You earned money painting houses over summers for the past five years and have saved $75,000. As summer ends, one of your house painting colleagues suggests that you start your own business that provides general household maintenance and upkeep on an hourly basis during the academic year: Rent a Handyperson. You have always wanted to run your own business and noticed a demand for such services from your region’s aging population. New tools and a used cargo van will cost about $35,000. Other fixed costs include your part-time salary, gas for the truck, insurance, and business fees of $38,000 per year. Your services will be priced at $40 per hour, and most jobs take two hours. Variable costs are $10 per project on average. Calculate the break-even number of jobs for the year for your business. After reviewing the break-even, what changes would you consider? Is this how you want to spend your savings?

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Marketing An Introduction

ISBN: 9780137476459

15th Edition

Authors: Gary Armstrong, Philip Kotler

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