Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 75 properties and earns an average of $5,000 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 20 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 10 percent. ELM plans to increase the price of service by 12.5 percent to cover expected increased wage and equipment costs. Estimate revenues for Emmons Lawn Maintenance for the coming year.
Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 75 properties and earns an average of $5,000 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 20 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 10 percent. ELM plans to increase the price of service by 12.5 percent to cover expected increased wage and equipment costs. Estimate revenues for Emmons Lawn Maintenance for the coming year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 75 properties and earns an average of $5,000 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 20 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 10 percent. ELM plans to increase the price of service by 12.5 percent to cover expected increased wage and equipment costs.
Estimate revenues for Emmons Lawn Maintenance for the coming year.
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