Question
Larsons Landscaping, Inc. is trying to determine its breakeven point in terms of the number of lawns that it will have to landscape during the
Larsons Landscaping, Inc. is trying to determine its breakeven point in terms of the number of lawns that it will have to landscape during the current fiscal year to breakeven. The firms CEO estimates that the fixed costs will total $225,000. The price paid by each client who purchases landscaping services averages $900; the Variable Costs per landscaped lawn averages $575.
a. Given this information, calculate the number of lawns that Larsons Landscaping must landscape this fiscal year in order to break even.
b. Given the number of landscaped lawns that you calculated in Part A above, what is the estimated value of the firms breakeven point in terms of Sales Revenue for this fiscal year?
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