Solved

A Local Pest Control Company Has Equipment Cost $150,000 and It

Question 105

Essay

A local pest control company has equipment cost $150,000 and it is estimated to have a lifetime of 7.5 years using a straight line depreciation.Additional fixed costs per year are $100,000.Variable costs per pest control service are $40 and the price per unit averages $125.What will annual profit be if the company services 475 customers annually? How many customers are needed to break even?

Correct Answer:

verifed

Verified

Annual depreciation = $150,000/7.5 years...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents