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 ($15.0 per hour) than garden maintenance ($7.5 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:

	Lawn Maintenance			Per Hour			Garden Maintenance			Per Hour			Total
Sales	$	200,000		$	25.0		$	50,000		$	25.0		$	250,000
Variable expenses		120,000			15.0			15,000			7.5			135,000
Contribution margin	$	80,000		$	10.0		$	35,000		$	17.5			115,000
Fixed expenses														32,200
Operating income													$	82,800

Required:

1. Compute the overall CM ratio for the company.

Overall contribution margin ratio

%

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 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 $76,160 if the tax rate is 30%.

Sales required to achieve after-tax target profit