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Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $24.0 per hour for each
Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $24.0 per hour for each type of service, but lawn maintenance has higher variable costs ($14.4 per hour) than garden maintenance ($72 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 Per Garden Per Lan Maintenance $ 192,000 115,200 Hour Maintenance Hour Total $24.0 48,00e 14,400 sales Variable expenses $24.e $ 248, e09 14.4 7.2 129,600 Contribution nargin 9.6 33,6ee 76,8ee $16.8 110,400 Fixed expenses 61,824 nces Operating income 48,576 Required: 1. Compute the overall CM ratio for the company. Overall contribution margin.retio 2. Compute the overall break-even point for the company in sales dolars Overall break-even point
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