Question: Tamara Ames owns and operates The Hassle-Free Hothouse (THH), which provides live plants and flower arrangements to professional offices. Tamara has fixed costs of $2,380

Tamara Ames owns and operates The Hassle-Free Hothouse (THH), which provides live plants and flower arrangements to professional offices. Tamara has fixed costs of $2,380 per month for office/greenhouse rent, advertising, and a delivery van. Variable costs for the plants, fertilizer, pots, and other supplies average $25 per job. THH charges $60 per month for the average job.
Required:
1. How many jobs must THH average each month to break even?
2. What is the operating income for THH in a month with 65 jobs? With 100 jobs?
3. Suppose that THH decides to increase the price to $75 per job. What is the new break-even point in number of jobs per month?

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1 Breakeven in units 238060 25 68 jobs per month 2 65 Jobs 100 Jobs Sale... View full answer

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