Greenjeans & co. presently provides a weekly maintenance service to 140 homes. variable costs per customer amount to approximately $10 per week for labor, mileage, and supplies. fixed costs are approximately $12,000 per quarter. customers pay $270 per quarter for the weekly service. all contracts are written for one quarter. (there are 13 weeks in one quarter.) how many customers are required to break even?

86 customers per quarter

Explanation:

Given,

Per quarter = 13 weeks

Fixed Cost = $12,000 per quarter

Variable cost = $10 per week x 13 weeks = $130 per quarter

Selling cost = $270 per quarter

We know,

Break-even point =

Putting the value in the formula,

Break-even point =

Break-even point = 85.71 or 86 customers per quarter.

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