Grace Kelly is a high school student who has been investigating the possibility of mowing lawns for a summer job. She has a couple of friends she thinks she could hire on an hourly basis per job. The equipment, including two new lawnmowers and weed-eaters, would cost her €500, and she estimates her cost per lawn, based on the time required to pay her friends to mow an average residential lawn (and not including her own labour) and gas for driving to the jobs and mowing, would be about €14. a) If she charges customers €30 per lawn, how many lawns would she need to mow to break even? Represent this graphically b) Grace has 8 weeks available to mow lawns before school starts again, and she estimates that she can get enough customers to mow at least 3 lawns per day, 6 days per week. How much money can she expect to make over the summer? c) Grace believes she can get more business if she lowers her price per lawn. If she lowers her price to €25 per lawn and increases her number of jobs to 4 per day (which is about all she can handle anyway), should she make this decision?

Grace Kelly is a high school student who has been investigating the possibility of mowing lawns for a summer job. She has a couple of friends she thinks she could hire on an hourly basis per job. The equipment, including two new lawnmowers and weed-eaters, would cost her €500, and she estimates her cost per lawn, based on the time required to pay her friends to mow an average residential lawn (and not including her own labour) and gas for driving to the jobs and mowing, would be about €14. a) If she charges customers €30 per lawn, how many lawns would she need to mow to break even? Represent this graphically b) Grace has 8 weeks available to mow lawns before school starts again, and she estimates that she can get enough customers to mow at least 3 lawns per day, 6 days per week. How much money can she expect to make over the summer? c) Grace believes she can get more business if she lowers her price per lawn. If she lowers her price to €25 per lawn and increases her number of jobs to 4 per day (which is about all she can handle anyway), should she make this decision?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter16: Tax Research

Section: Chapter Questions

Problem 64DNC

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