Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 87 properties and earns an average of $7,400 annually for each property. The owner of ELM is planning for the coming year. New building in the area is expected to increase volume by 32 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 22 percent. ELM plans to increase the price of service by 18.5 percent to cover expected increased wage and equipment costs. Required: Estimate revenues for Emmons Lawn Maintenance for the coming year. Note: Enter your answer rounded to the nearest whole dollar. Revenues
Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 87 properties and earns an average of $7,400 annually for each property. The owner of ELM is planning for the coming year. New building in the area is expected to increase volume by 32 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 22 percent. ELM plans to increase the price of service by 18.5 percent to cover expected increased wage and equipment costs. Required: Estimate revenues for Emmons Lawn Maintenance for the coming year. Note: Enter your answer rounded to the nearest whole dollar. Revenues
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 12P
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