Three college students consider the option of forming a lawn care and landscaping business during their summer vacation. They estimate the following costs: Insurance $ 2,600 for the summer Equipment Rental Fees $1,000 for the summer Fuel and Supplies $4 per lawn Miscellaneous Expenses $2 per lawn Their projected revenue depends on the number of lawns serviced. The price per job is $30. The going wage for a typical unskilled college student is about $2,400 for the summer months. Realistically, the small business should expect to service about 200 lawn jobs during the summer. Should the three students launch the business? Why or why not?

Three college students consider the option of forming a lawn care and landscaping business during their summer vacation. They estimate the following costs: Insurance $ 2,600 for the summer Equipment Rental Fees $1,000 for the summer Fuel and Supplies $4 per lawn Miscellaneous Expenses $2 per lawn Their projected revenue depends on the number of lawns serviced. The price per job is $30. The going wage for a typical unskilled college student is about $2,400 for the summer months. Realistically, the small business should expect to service about 200 lawn jobs during the summer. Should the three students launch the business? Why or why not?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Three college students consider the option of
forming a lawn care and landscaping business
during their summer vacation. They estimate the
following costs:
Insurance
$ 2,600 for the
summer
Equipment Rental Fees
$1,000 for the
summer
Fuel and Supplies
$ 4 per lawn
Miscellaneous Expenses $2 per lawn
Their projected revenue depends on the
number of lawns serviced. The price per job is
$30. The going wage for a typical unskilled
college student is about $2,400 for the summer
months. Realistically, the small business should
expect to service about 200 lawn jobs during
the summer. Should the three students launch
the business? Why or why not?

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