Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $4,300 per month for office/greenhouse rent, advertising, and a delivery van. Variable costs for the plants, fertilizer, pots, and other supplies average $20 per job. GTC charges $63 per month for the average job.

Required:

1. How many jobs must GTC average each month to break even?

2. What is the operating income for GTC in a month with 97 jobs? Enter a net loss as a negative amount.

What is the operating income for GTC in a month with 105 jobs?

3. Jonah faces a tax rate equal to 25 percent. How many jobs must Jonah have per month to earn an after-tax income of $1,260? Round your answer to the nearest whole number of jobs.

4. Suppose that Jonahs fixed costs increase to $4,424 per month and he decides to increase the price to $79 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Lawyers In A Nutshell

Authors: Charles Meyer

7th Edition

1647083001, 9781647083007

More Books

Students also viewed these Accounting questions

Question

What is the correct citation for tl1e article?

Answered: 1 week ago