Question
Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flower arrangements to professional offices. Jonah has fixed costs of
Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flower arrangements to professional offices. Jonah has fixed costs of $3,120 per month for office/greenhouse rent, advertising, and a delivery van. Variable costs for the plants, fertilizer, pots, and other supplies average $21 per job. GTC charges $60 per month for the average job. Required: 1. How many jobs must GTC average each month to break even? fill in the blank 1 jobs per month 2. What is the operating income for GTC in a month with 76 jobs? Enter a net loss as a negative amount. $fill in the blank 2 What is the operating income for GTC in a month with 85 jobs? $fill in the blank 3 3. Jonah faces a tax rate equal to 20 percent. How many jobs must Jonah have per month to earn an after-tax income of $1,140? Round your answer to the nearest whole number of jobs. fill in the blank 4 jobs per month 4. Suppose that Jonahs fixed costs increase to $3,249 per month and he decides to increase the price to $76 per job. What is the new break-even point in number of jobs per month? Round your answer to the nearest whole number of jobs. fill in the blank 5 jobs per month
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started