Question

Break-Even for a Service Firm Jonah Graham owns and operates The Green Thumb Company (GTC), which...

Break-Even for a Service Firm Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flower arrangements to professional offices. Jonah has fixed costs of $3,115 per month for office/greenhouse rent, advertising, and a delivery van. Variable costs for the plants, fertilizer, pots, and other supplies average $22 per job. GTC charges $57 per month for the average job.

Required: 1. How many jobs must GTC average each month to break even?

2. What is the operating income for GTC in a month with 85 jobs? Enter a net loss as a negative amount.

What is the operating income for GTC in a month with 96 jobs?

3. Jonah faces a tax rate equal to 20 percent. How many jobs must Jonah have per month to earn an after-tax income of $1,080? Round your answer to the nearest whole number of jobs. jobs per month

4. Suppose that Jonah’s fixed costs increase to $3,273 per month and he decides to increase the price to $70 per job. What is the new break-even point in number of jobs per month? Round your answer to the nearest whole number of jobs. jobs per month

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Break-Even for a Service Firm Jonah Graham owns and operates The Green Thumb Company (GTC), which...
Break-Even for a Service Firm Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flower arrangements to professional offices. Jonah has fixed costs of $3,705 per month for office/greenhouse rent, advertising, and a delivery van. Variable costs for the plants, fertilizer, pots, and other supplies average $23 per job. GTC charges $62 per month for the average job. Required: 1. How many jobs must GTC average each month to break even? jobs per month...
The Atlantic Company sells a product with a break-even point of 6,475 sales units. The variable...
The Atlantic Company sells a product with a break-even point of 6,475 sales units. The variable cost is $94 per unit, and fixed costs are $375,550. Determine the unit sales price. Round answer to nearest whole number. $ Determine the break-even points in sales units if the company desires a target profit of $96,454. Round answer to the nearest whole number. units
Multiple Product Break-Even Analysis Joe's Tax Service prepares tax returns for low-to middle-income taxpayers. Its service...
Multiple Product Break-Even Analysis Joe's Tax Service prepares tax returns for low-to middle-income taxpayers. Its service operates January 2 through April 15 at a counter in a local grocery store. All jobs are classified into one of three categories: standard, multiform, and complex. Following is information for last year. Also, last year, the fixed cost of rent, utilities, and so forth were $80,000. STANDARD MULTIFORM COMPLEX BILLING RATE $75 $150 $275 AVERAGE VARIABLE COSTS (30) (75) (150) AVERAGE CONTRIBUTION MARGIN...
Problem 4-20 Sales Mix; Multi-Product Break-Even Analysis [LO9] Smithen Company, a wholesale distributor, has been operating...
Problem 4-20 Sales Mix; Multi-Product Break-Even Analysis [LO9] Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products—sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Units Percentage   Sinks 500 45 %   Mirrors 300 27 %   Vanities 300 27 %   Total 1,100 100 % Product Sinks Mirrors Vanities Total   Percentage of total sales 42 % 30...
Break-Even Units: Units for Target Profit Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee...
Break-Even Units: Units for Target Profit Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 23,000 units at a price of $330 each. Product costs include: Direct materials $69.00 Direct labor $40.00 Variable overhead $10.00 Total fixed factory overhead $606,800 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $111,000. Required: 1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar....
Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales...
Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales $8,256,000 Cost of goods sold $2,064,000 Selling, general, and administrative expenses 430,000 2,494,000 Operating income $5,762,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 43,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and administrative expenses. Assume that the remaining costs are fixed. For the following year,...
Break-even analysis for a service company Rotelco is one of the largest digital wireless service providers...
Break-even analysis for a service company Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers (accounts) that generated revenue of $60,700. Costs and expenses for the year were as follows: Cost of revenue $29,100 Selling, general, and administrative expenses 17,000 Depreciation 6,700 Assume that 65% of the cost of revenue and 30% of the selling, general, and administrative expenses are variable to the number of...
Break-even analysis for a service company Rotelco is one of the largest digital wireless service providers...
Break-even analysis for a service company Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers (accounts) that generated revenue of $34,300. Costs and expenses for the year were as follows: Cost of revenue $15,100 Selling, general, and administrative expenses 9,600 Depreciation 3,800 Assume that 70% of the cost of revenue and 40% of the selling, general, and administrative expenses are variable to the number of...
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Sandoval Company prepared the...
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Sandoval Company prepared the following projected income statement: Sales $90,000 Total Variable cost 79,000 Contribution margin $11,000 Total Fixed cost 6,500 Operating income $4,500 Required: 1. Calculate the contribution margin ratio. Round your answer to the nearest whole number. % 2. Calculate the variable cost ratio. Round your answer to the nearest whole number. % 3. Calculate the break-even sales revenue for Sandoval. If required, round your answer...
Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales...
Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales $6,080,000 Cost of goods sold $1,520,000 Selling, general and administration 684,000 $2,204,000 Income from operations $ 3,876,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 38,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and administration expenses. Assume that the remaining costs are fixed. For the following...