No. The $4.00 charged is for current expenses.
$20 for each lawn repays their original investment.
a .34 lawns
b. 40 lawns
c. 50 lawns
d. 20 lawns
IS IT A ????
$20 for each lawn repays their original investment.
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.