Morgan is planning to run a small lawn care business this summer. He can rent a ride-on lawn tractor for $680 per month. He estimates it will cost $5 in gasoline to cut the average lawn, and he intends to charge a flat rate of $25 per law.
a) What is the contribution rate that Morgan's business is expected to generate?
b) What is Morgan's break-even level of revenue per month?
c) How many lawns per month must Morgan cut in order to break even?

Question

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The Answer of Morgan is planning to run a small lawn care business this summer. He can rent a ride-on lawn tractor for $680 per month. He estimates it will cost $5 in gasoline to cut the average lawn, and he intends to charge a flat rate of $25 per law.
a) What is the contribution rate that Morgan's business is expected to generate?
b) What is Morgan's break-even level of revenue per month?
c) How many lawns per month must Morgan cut in order to break even?

Morgan Is Planning to Run a Small Lawn Care Business