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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? Lawn

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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? Lawn Care Garden Maintenance Number of hours 6. Calculate the overall sales in dollars required to earn an after-tax profit of $69.160 if the tax rate is 30% Sales required to achieve after-tax target profit Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $18.0 per hour for each type of service, but lawn maintenance has higher variable costs ($72 per hour) than garden maintenance ($3.6 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, 8,000 hours of lawn maintenance services and 2,000 hours of garden maintenance were provided: Sales Variable expenses Lawn Maintenance $ 144,000 57,600 Per Garden Per Hour Maintenance Hour Total $18.0 $ 36,000 $18.0 $ 180,000 7.2 7,200 3.6 64,800 Contribution margin $ 86,400 $10.8 $ 28,800 $14.4 115,200 Fixed expenses 32,256 Operating income 5 82,944

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