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You plan to start a grass-cutting service. You have identified the following costs: Lawn mower: $850 Rakes and other tools: $450 Gasoline to power the
You plan to start a grass-cutting service. You have identified the following costs: Lawn mower: $850 Rakes and other tools: $450 Gasoline to power the mower: $5 per job Advertising: $2500 Labour: $20 per job Liability insurance premium: $1500 Truck lease: $199 per month + $2500 down payment On average, you will charge $49.99 per job How many lawns (jobs) to break-even in a 7-month season? Calculate the breakeven revenue. If 175 jobs are completed, what is the net income or loss? To have a net income of $7500, how many jobs are required? What other factors / costs should be considered? NI = ( PVC) * units - FC At breakeven, NI = 0 For the toolbar. press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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