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3. Compute the weighted-average CM per hour for the company. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4. Calculate the
3. Compute the weighted-average CM per hour for the company. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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 company to break-even?
6. Calculate the overall sales in dollars required to earn an after-tax profit of $67,200 if the tax rate is 30%.
Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $10.0 per hour for each type of service, but lawn maintenance has higher variable costs ($6.0 per hour) than garden maintenance ($3.0 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, 8,000 hours of lawn maintenance services and 2,000 hours of garden maintenance were provided: Sales Variable expenses Lawn Maintenance $ 80,000 48,000 Per Garden Per Hour Maintenance Hour Total $10.0 $ 20,000 $10.0 $ 100,000 6.0 6,000 3.0 54,000 Contribution margin $ 32,000 $ 4.0 $ 14,000 $ 7.0 46,000 Fixed expenses 25,760 Operating income $ 20, 240 Required: 1. Compute the overall CM ratio for the company. Overall contribution margin ratio % 2. Compute the overall break-even point for the company in sales dollars. Overall break-even point
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