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E22.8 (LO 3, 4), AP Service All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation (straight-line)
E22.8 (LO 3, 4), AP Service All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation (straight-line) Advertising $1,400 per month $200 per month Insurance $2,000 per month Weed and feed $12 per materials lawn Direct labor $10 per lawn Fuel $2 per lawn All That Blooms charges $60 per treatment for the average single-family lawn. For the month ended July 31, 2022, the company had total sales of $7,200. Instructions a. Prepare a CVP income statement for the month ended July 31, 2022. Include columns for per unit and percent of sales information. b. Determine the company's break-even point in (1) number of lawns serviced per month and (2) sales dollars. Compute break-even point in sales units and in sales dollars. 22-40
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