Exercise 18-8 (Part Level Submission)

All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.

Depreciation		$ 1,400	per month
Advertising		$ 1,968	per month
Insurance		$ 1,000	per month
Weed and feed materials		$ 16	per lawn
Direct labor		$ 12	per lawn
Fuel		$ 3	per lawn

All That Blooms charges $ 70 per treatment for the average single-family lawn.

(a)

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

Break-even point

lawns