Question
Required: 1. Compute the overall CM ratio for the company. 2. Compute the overall break-even point for the company in sales dollars. 3. Compute the
Required:
1. Compute the overall CM ratio for the company.
2. Compute the overall break-even point for the company in sales dollars.
3. Compute the weighted-average CM per hour for the company. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
4. Calculate the overall break-even point for the company in hours.
5. At the overall break-even point in total hours, how many hours of each servic must be provided for the company to break-even?
6. Calculate the overall sales in dollars required to earn an after-tax profit of $67,200 if the tax rate is 30%.
Pls explain briefly!
Gulf Shore Lawn and Garden Malntenance provides two general outdoor services: lawn malntenance and garden maintenance. The company charges customers $25.0 per hour for each type of service, but lawn malntenance has higher varlable costs ($15.0 per hour) than garden malntenance ($7.5 per hour) because of fuel expenses Incurred to operate lawn-mowing equipment. All employees are pald a fixed monthly salary. A contribution format Income statement for a recent month for the two services appears below. During the month, 8,000 hours of lawn malntenance services and 2000 hours of garden maintenance were provided: Lawn Per Garden Per Maintenance Hour Maintenance HourTotal s 288,888 $25.e 58, $25. $ 258,86 Sales Variable expenses Contribution nargin Fixed expenses Operating income 128,00 15. 15,80 7.5 135,800 $88,8e8 $18. 35,800 17.5 115,888 56,358 $ 58,656eStep by Step Solution
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