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SP5 Frances Drew ib_e03_landscapingstartup

SP5 Frances Drew ib_e03_landscapingstartup - achieve...

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# Question Answer 9 No 10 No 11 12 Is this company making any profit servicing only 25 customers per year. Will this business be profitable if 100 customers are serviced in a year? How many customers must be services for the Net Profit to be approximately 0? How many customers for the profit to be approximately $5000 in Net Profit? 152 customers are needed to have a net profit close to 0 and in order to make just over $5000 they will need 295 customers. What if the price customers were willing to pay per acre dropped to $25, but the average number of acres increased to 1.75? How many customers will it take to
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Unformatted text preview: achieve approximately $5000 in Net Profit? 306 customers will be needed in order to make the $5000 needed Landscaping Business Number of Customers Serviced This Year 306 Net Profit $5,028 COST INFORMATION Startup Fixed Costs Commercial Lawnmower Cost $4,500 Trimmer $400 Blower $400 Sub Total $5,300 Variable Total Cost Supplies $10 $3,060 Total Costs $8,360 SALES INFORMATION Price per Acre $25.00 Average Number of Acres per Lawn 1.75 Average Sales Revenue per Customer $43.75 Total Sales $25.00 $13,388 Per Customer...
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