Question

Larry is starting his own lawn service company. He has initial startup costs totaling $300, plus ongoing operating expenses. The function representing Larry's expenses and the function representing Larry's income for lawn services are shown in the graph.

Larry's lawn service; Y, money, dollars; income, expenses; number of lawns mowed, x;

Approximately how many lawns will Larry have to mow before he starts making a profit?

A
Larry must mow approximately 300 lawns before he starts making a profit.
B
Larry must mow approximately 350 lawns before he starts making a profit.
C
Larry must mow approximately 25 lawns before he starts making a profit.
D
Larry will start making a profit when he mows his first lawn.

Answer 1

C. He breaks even at about 25 lawns.

Reason: the fixed startup cost is $300, and each lawn gives a net gain equal to (income per lawn − operating cost per lawn). From the graph that net gain is $12 per lawn, so 300 ÷ 12 = 25 lawns to cover the startup cost.