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Johnny started a lawn mowing business. He hires people to mow lawns and pays them an hourly wage. Johnny service is standard so he cannot
Johnny started a lawn mowing business. He hires people to mow lawns and pays them an hourly wage.
Johnny service is standard so he cannot charge a premium. He is a price-taker.
If the selling price for lawn mowing services is $60, and Johnny wants to make a profit of $20 per lawn, what is the most cost he can incur per lawn (labor, materials, overhead) and still make his target profit?
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