Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $ per hour for each type of service, but lawn maintenance has higher variable costs $ per hour than garden maintenance $ per hour because of fuel expenses incurred to operate lawnmowing equipment. All employees are paid a fixed monthly salary. A contribution format income statement for a recent month for the two services appears below. During the month, hours of lawn maintenance services and hours of garden maintenance were provided:
Lawn
Maintenance Per
Hour Garden
Maintenance Per
Hour Total
Sales $ $ $ $ $
Variable expenses
Contribution margin $ $ $ $
Fixed expenses
Operating income $
Required:
Compute the overall CM ratio for the company.
Compute the overall breakeven point for the company in sales dollars.
Compute the weightedaverage CM per hour for the company. Do not round intermediate calculations. Round your answers to decimal places.
Calculate the overall breakeven point for the company in hours.
At the overall breakeven point in total hours, how many hours of each service must be provided for the company to breakeven?
Calculate the overall sales in dollars required to earn an aftertax profit of $ if the tax rate is