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Break - Even for a Service Firm Jonah Graham owns and operates The Green Thumb Company ( GTC ) , which provides live plants and
BreakEven for a Service Firm
Jonah Graham owns and operates The Green Thumb Company GTC which provides live plants and flower arrangements to professional offices.
Jonah has fixed costs of $ per month for officegreenhouse rent, advertising, and a delivery van. Variable costs for the plants, fertilizer, pots,
and other supplies average $ per job. GTC charges $ per month for the average job.
Required:
How many jobs must GTC average each month to break even?
jobs per month
What is the operating income for GTC in a month with jobs? Enter a net loss as a negative amount.
$
What is the operating income for GTC in a month with jobs?
$
Jonah faces a tax rate equal to percent. How many jobs must Jonah have per month to earn an aftertax income of $ Round your
answer to the nearest whole number of jobs.
jobs per month
Suppose that Jonah's fixed costs increase to $ per month and he decides to increase the price to $ per job. What is the new breakeven
point in number of jobs per month? Round your answer to the nearest whole number of jobs.
jobs per month
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