Jared Is Looking to Expand His Lawn-Mowing Business and Wants

question 12

Essay

Jared is looking to expand his lawn-mowing business and wants to evaluate the profitability of a potential new market. The area he is looking at has 400 homes and Jared estimates that 10 percent of them would be likely to use his service. He charges $25 per mowing and on average customers mow their lawns 20 times a year. Jared estimates the variable costs to expand his business will be $5 per mowing and his fixed costs are $2,000. How much profit would Jared make on this new segment?

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Definitions:

Initiating Structure

A leadership behavior that focuses on defining roles, tasks, and the structures necessary to achieve goals efficiently.

Labeled

The process of assigning a name, category, or description to individuals or groups based on perceived attributes, often influencing how they are perceived and treated by others.

Country Club

A management style focused on creating a comfortable and friendly work environment, often prioritizing the welfare and happiness of employees over strict productivity or performance measures.

Leadership Grid

A model used to define leadership styles based on a leader's concern for people and their concern for production, aiming to identify the most effective leadership approach.