Oriole provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation - $1,500 per month Advertising - $100 Insurance - $4,035 per month Weed and feed materials - $17 per lawn Direct labor - $3 per lawn Fuel - $1 per lawn Oriole charges $70 per treatment for the average single-family lawn. Determine the company's break-even point in the number of lawns serviced per month.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11E
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Oriole provides environmentally friendly lawn services for
homeowners. Its operating costs are as follows.
Depreciation - $1,500 per month
Advertising - $100
Insurance - $4,035 per month
Weed and feed materials - $17 per lawn
Direct labor - $3 per lawn
Fuel - $1 per
lawn
Oriole charges $70 per treatment for the average single-family lawn.
Determine the company's break-even point in the number of lawns
serviced per
month.
Transcribed Image Text:Oriole provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation - $1,500 per month Advertising - $100 Insurance - $4,035 per month Weed and feed materials - $17 per lawn Direct labor - $3 per lawn Fuel - $1 per lawn Oriole charges $70 per treatment for the average single-family lawn. Determine the company's break-even point in the number of lawns serviced per month.
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