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16.9 Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and frower arrangements to professional offices. Jonah has fixed costs
16.9
Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and frower arrangements to professional offices. Jonah has fixed costs of $3,960 per-month for office/greenhouse rent, advertising; and a delivery van, Variable costs for the plants, fertilizer, pots, and other supplies average 520 per fob. GTC charges $60 per month for the average job. Required: 1. How many jobs must GTC average each month to break even? jobs per month 2. What is the operating income for GTC in a month with 95 jobs? Enter a net loss as a negative amount. 1 What is the operating income for Gre in a month with 104 jobs? 1 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 $1,240? Round your answer to the nearest whole number of jobs. jobs per month 4. Suppose that Jonah's foxed costs increase to $4,092 per month and he decides to increase the price to $72 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. Jobs per month Step by Step Solution
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