You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 210 hours per month and charge your customers $23 per hour. Your anticipated costs include: Advertising $47.00 per month Gas $1.50 per hour Depreciation Assistant's Wages $25.00 per month $10.00 per hour Miscellaneous Expenses $940.00 per month Calculate your budgeted Total Contribution Margin on the contribution margin income statement.
You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 210 hours per month and charge your customers $23 per hour. Your anticipated costs include: Advertising $47.00 per month Gas $1.50 per hour Depreciation Assistant's Wages $25.00 per month $10.00 per hour Miscellaneous Expenses $940.00 per month Calculate your budgeted Total Contribution Margin on the contribution margin income statement.
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1EP
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