Question
Tuck's Trees is a tree farm.He sells a large variety of trees types ranging in size from potted trees to juvenile aged trees.Tuck's has the
Tuck's Trees is a tree farm.He sells a large variety of trees types ranging in size from potted trees to "juvenile" aged trees.Tuck's has the following fixed and variable costs for the potted tree types.Show details and computations.Each "potted" tree sells for $100.
Fixed Costs (per month)Variable Costs per tree
Land Rental$1000Seedling$5.00
Fertilizer 300Vigor Sprout plant food2.00
Horticultural services500Packaging5.00
Equipment rentals300Water50.00
Wages of supervisor 600Advertising5.00
____________
Total fixed/ month$2700Total variable per tree $67.00
1. How many trees of the potted type must be sold monthly at the price of $100 each for the potted tree segment of the business to breakeven?
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