Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $25.0 per hour for each
Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $25.0 per hour for each type of service, but lawn maintenance has higher variable costs ($10.0 per hour) than garden maintenance ($50 per hour) because of fuel expenses incurred to operate lawn-mowing equipment. All employees are paid a fixed monthly salary. A contribution format income statement for a recent month for the two services appears below. During the month, 8,000 hours of lawn maintenance services and 2.000 hours of garden maintenance were provided: Sales Variable expenses Lawn Per Garden Per Maintenance Hour Maintenance Hour $ 200,000 $25.0 $50,000 $25.0 80,000 10.0 10,000 5.0 Total $ 250.000 90,000 Contribution margin $ 120,000 $15.0 $ 40,000 $20.0 160,000 56.000 Fixed expenses Operating income $ 104,000 Required: 1. Compute the overall CM ratio for the company Overall contribution maron ratio 2. Compute the overall break-even point for the company in sales dollars. Check my wor 2. Compute the overall break-even point for the company in sales dollars. Overall break-even point 3. Compute the weighted average CM per hour for the company. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Lawn Care Garden Maintenance Weighted average CM per hour 4. Calculate the overall break-even point for the company in hours. Total break even point in houts hours Help Save & Exit Suto Check my wor Total break-even point in hours hours 5. At the overall break-even point in total hours, how many hours of each service must be provided for the company to break-even? Lawn Care Garden Maintenance Number of hours 6. Calculate the overall sales in dollars required to earn an after-tax profit of $57,750 if the tax rate is 30%. Sales required to achieve after-tax target profit
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bd47956745_504669bd478b0434.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bd47a345ba_505669bd47997d12.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bd47b19ed9_506669bd47a78c09.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started