Question:
Computing contribution margin, breakeven point, and units to achieve operating income
This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 18-36 of Chapter 18. Lawlor Lawn Service currently charges $100 for a standard lawn service and incurs $60 in variable cost. Assume fixed costs are $1,400 per month.
Requirements
1. What is the number of lawns that must be serviced to reach break even?
2. If Lawlor desires to make a profit of $1,800, how many lawns must be serviced?