Question 7 Compute the Break-Even Point for a Multi-Service Company; Compute Sales for a Target Profit Fairview Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $30 per hour for each type of service, but lawn maintenance has higher variable costs ($14 per hour) than garden maintenance ($6 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, 12,000 hours of lawn maintenance services and 4,000 hours of garden maintenance were provided Sales Variable expenses Contribution margin Fixed expenses Operating income Lawn Garden Per Hour Per Hour Maintenance Maintenance $ 360,000 $ 30 $ 120,000 $ 30 $ 168,000 14 24,000 6 192,000 16 96,000 24 Total 480,000 192,000 288,000 216,000 72,000 $ Required: 1. Compute the overall CM ratio for the company. 2. Compute the overall break-even point for the company in sales dollars