Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 92 properties and earns an average of $8,400 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 37 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 27 percent. ELM plans to increase the price of service by 21.0 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.
Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 92 properties and earns an average of $8,400 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 37 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 27 percent. ELM plans to increase the price of service by 21.0 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 92
properties and earns an average of $8,400 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 37 percent. In addition, the owner estimates that the number of homeowners
that will want ELM's service will increase by 27 percent.
ELM plans to increase the price of service by 21.0 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
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