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What value in sales dollars for lawn maintenance is expected at the break even point? Gulf Shore Lawn and Garden Maintenance provides two general outdoor

What value in sales dollars for lawn maintenance is expected at the break even point?

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Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $15 per hour for each type of service, but lawn maintenance has higher variable costs ($7 per hour) than garden maintenance ($3 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, 6,000 hours of lawn maintenance services and 2,000 hours of garden maintenance were provided: Lawn Per Garden Per Maintenance Hour Maintenance Hour Total Sales ........... $90,000 $15 $30,000 $120,000 Variable expenses. ...... 42000 7 6,000 48000 Contribution margin..... $48,000 $8 $24,000 72,000 Fixed expenses ........ 54000 Operating income. .... 18000

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