Break-even for a service firm jonah graham owns and operates the green thumb company (gtc), which provides live plants and flower arrangements to professional offices. jonah has fixed costs of $3,240 per month for office/greenhouse rent, advertising, and a delivery van. variable costs for the plants, fertilizer, pots, and other supplies average $24 per job. gtc charges $60 per month for the average job. required: 1. how many jobs must gtc average each month to break even

The company should provide, in average, 90 jobs per month in order to break even.

Explanation:

We will assume that the variable costs are proportional to the quantity and thus VC=a*Q

the profit obtained is

profit = P*Q  , (Price [$/job] * Jobs sold [jobs])

and the total costs are

total costs= FC+VC = FC + a*Q , FC=fixed costs

in order to break even the quantity sold should be enough to cover all costs, therefore

profit = total costs

P*Q = FC + a*Q → Q= FC/(P-a)

thus

Q= FC/(P-a) = $3240 / ($60/job - $24/job) = 90 jobs

answer; i believe the correct answer is (form utility); good luck

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough