(b)Determine the company's break-even point in (1) number of lawns serviced per month and (2) sales dollars.(1) Break-even point in lawns(2) Break-even point in dollars$ Cullumber provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.Depreciation (straight-line)AdvertisingInsurance$1,400 per month$300 per month$3,130 per monthWeed and feed materials$14 per lawnDirect laborFuel$12 per lawn$2 per lawnCullumber charges $70 per treatment for the average single-family lawn. For the month ended July 31, 2027, the company had totalsales of $8,400.(a)Your answer is correct.Prepare a CVP income statement for the month ended July 31, 2027.CULLUMBERCVP Income StatementFor the Month Ended July 31, 2027Totalè Costsution Marginostsome/(Loss)$Per Unit8,400$3,3605,040$4,830210287042Percent of Sales100%40%60%

Detailed explanation:b. breakeven point in lawns = fixed costs / contribution margin per lawn = 4830…

Answered: (b) Determine the company's break-even…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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