Exercise 18-08

Carla Vista provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.

Depreciation		$1,500	per month
Advertising		$200	per month
Insurance		$1,660	per month
Weed and feed materials		$22	per lawn
Direct labor		$8	per lawn
Fuel		$2	per lawn

Carla Vista charges $64 per treatment for the average single-family lawn.

Determine the companys break-even point in number of lawns serviced per month.

Break-even point

lawns

Determine the companys break-even point in dollars.

Break-even point

$