Break-Even 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 $3,800 per month for office/greenhouse rent, advertising, and a delivery van. Variable costs for the plants, fertilizer, pots, and other supplies average $22 per job. 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 97 jobs? Enter a net loss as a negative amount. $

What is the operating income for GTC in a month with 107 jobs? $

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 $1,380? Round your answer to the nearest whole number of jobs. jobs per month

4. Suppose that Jonahs fixed costs increase to $3,966 per month and he decides to increase the price to $76 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