Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

break-tven for a service firto Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and fower arrangements to professional offces.

image text in transcribed
break-tven for a service firto Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and fower arrangements to professional offces. lonah has fixed costs of $3,686 per month for office/greenhouse rent, advertising, and a delivery van. Varlable costs for the plants, fertalizer, pots, and other supplies average $25 per fob. GrC charges 563 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 93 jobs? Enter a net loss as a negative amount. What is the operating income for GTC in a month with 102 jobs? 3. Jonah faces a tax rate equal to. 20 percent. How many jobs must Jonah have per month to earn an after-tax income of 51,020 ? Round your answer to the nearest whole number of jobs. Jobs per month 4. Suppose that Jonah's fixed costs increase to $3,885 per month and he decides to increase the price to 578 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Managerial Accounting Concepts

Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds

8th edition

978-1259569197

Students also viewed these Accounting questions

Question

* What is the importance of soil testing in civil engineering?

Answered: 1 week ago

Question

Explain the concept of shear force and bending moment in beams.

Answered: 1 week ago