Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 75 properties and earns an average of $5,000 annually for each property. The owner of ELM is planning for the coming year. New building in the area is expected to increase volume by 20 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 10 percent. ELM plans to increase the price of service by 12.5 percent to cover expected increased wage and equipment costs. Estimate revenues for Emmons Lawn Maintenance for the coming year.

Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 75 properties and earns an average of $5,000 annually for each property. The owner of ELM is planning for the coming year. New building in the area is expected to increase volume by 20 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 10 percent. ELM plans to increase the price of service by 12.5 percent to cover expected increased wage and equipment costs. Estimate revenues for Emmons Lawn Maintenance for the coming year.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 12P

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Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 85 properties and earns an average of $7,000 annually for each property. The owner of ELM is planning for the coming year. New building in the area is expected to increase volume by 30 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 20 percent. ELM plans to increase the price of service by 17.5 percent to cover expected increased wage and equipment costs. Required: Estimate revenues for Emmons Lawn Maintenance for the coming year. Note: Enter your answer rounded to the nearest whole dollar. Revenues
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