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?
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Annual depreciation = $150,000/7.5 years...View Answer
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