Terry and Ed start a lawn mowing business and purchase mowers and equipment for $800. They charge $20 for each lawn and $4 worth of gas for each job. How many laws must Terry and Ed mow before breaking even?
a .34 lawns
b. 40 lawns
c. 50 lawns
d. 20 lawns
IS IT A ????
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No. The $4.00 charged is for current expenses.
$20 for each lawn repays their original investment.
Ohhh. So it's b ?
@@ms.sue
Yes. They'll recoup their investment after 40 lawns.
To find out how many lawns Terry and Ed must mow before breaking even, we need to calculate their total costs and divide it by the profit they make from each lawn.
Let's break down the costs and profit:
- The cost of mowers and equipment is $800. This is a one-time cost that doesn't change no matter how many lawns they mow.
- For each lawn, they charge $20. This is the revenue they make from each job.
- They spend $4 worth of gas for each job.
To calculate the total cost per lawn, we add the cost of gas ($4) to the initial equipment cost ($800).
Total cost per lawn = $4 + $800 = $804
To find out how many lawns they must mow to break even, we divide the total cost by the profit from each lawn:
Break-even point = Total cost per lawn / Profit per lawn
Break-even point = $804 / $20
Using simple division, we find:
Break-even point = 40.2
Since we cannot have a fraction of a lawn, we need to round up to the nearest whole number. Therefore, Terry and Ed must mow at least 41 lawns before breaking even.
So the correct answer is b. 40 lawns.