Andy and Jonathan decide to quit their jobs, which have net salary of $60,000 per year one person. And open a golf course that charge $20 for 18 holes and $10 for 9 holes. And they decide to find a painting job to support their golf course. The revenues and expenses associated with painting are in Exhibit 2. The average painting job is 1,300 square feet. On an annual basis, for every round of disc golf we sell, three painting jobs should be sold.

prepare a report for Jonathan and Andy showing the level of sales required to cover their fixed costs (break even) in both businesses and the level of sales required to replace their existing incomes from both businesses. Assume a tax rate of 30%. Your report should include any qualitative factors that Jonathan and Andy should consider in their decision.

EXHIBIT 1- COSTS ASSOCIATED WITH THE DISC GOLF Business

Land rent$5,000 per month, Rent payments will be made in April to September

Equipment rent$9,000 annually,

Property maintenance$6,000 annually

EXHIBIT 2-REVENUES AND EXPENSES ASSOCIATED WITH THE PAINTING

Price charged per square foot:$2

Paint per square foot: = $0.32

Rollers (each) $1.49,(4 rollers per job)

Paint brushes $250.00 Annual cost

Other supplies $ 800.00 Annual cost

DepreciationVehicle $10,000.00 Annual cost

Advertising cost $2,000.00 Annual cost

P.S: 64,285.71/ (10/9) = 57,857.14.