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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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