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# chapter 18 - E 18-8 Correct Green with Envy provides...

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Unformatted text preview: E 18-8 \/ Correct. Green with Envy provides environmentally friendly lawn services for homeowners. Its operating costs are Depreciation \$1500 per month hduorl'ioinn 9““ nor mnnl'h AE18-9 \/ (Torrent. Contribution margin per room = \$65 - (\$7.80 + \$31.20) tare rented at 65 er ni ht.0 eratin costs are Contribution margin per room 2 \$26 I \$ ll g p g Contribution margin ratio = \$26 + \$65 = 40% Fixed costs = \$7,735 + \$1,658 + \$1,105 + \$552 = \$11,050 In the month of March, New Day Spa services 650 clients at an average price of \$160. During the month, ﬁxed costs were \$28,608 and variable costs were 60% of sales. V Correct. Determine the contribution margin in dollars, per unit, and as a ratio. — 41500 —_E \$ 2 B , ﬁt] 8 Breakaven sales in dollars: = \$21,521] AE 18-11 Airport Connection provides shuttle service between four hotels near a medical center and an international airport. Airport Connection uses two 10 passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-proﬁt income statement is shown below. Fare revenues (1,480 fares] \$39,960 Variable costs Fuel \$6,234 Tolls and Parking 3,11? . . . . . _ \$29,520 _ Contribution margin ratio is. \$39,950 — 24% _ _ 15 683 Break—oven point in dollars: a? = \$21,200 — . 39 QED Round tri fare: '— = 2? J P 1,4eo fares \$ Cak _ _ 21 2130 no! Faces, e. . 505. Break-oven point in fares: L'— = 3'85 fares '0 g l I \$2? —ml ...
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