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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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