Three College Students Consider the Option of Forming a Lawn

question 46

Essay

Three college students consider the option of forming a lawn care and landscaping business during their summer vacation. They estimate the following costs:
$\begin{array} { | l | l | } \hline \text { Insurance } & \$ 2,600 \\\hline \text { Equipment Rental Fees } & \$ 1,000 \\\hline \text { Fuel and Supplies } & \$ 4 \text { per lawn } \\\hline \text { Miscellaneous Expenses } & \$ 2 \text { per lawn } \\\hline\end{array}$ Their projected revenue depends on the number of lawns serviced. The price per job is $30. The going wage for a typical unskilled college student is about $2,400 for the summer months. Derive an equation for total accounting profit and total economic profit. Should the students launch the business if they expect to service about 200 lawn jobs during the summer?

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Definitions:

First President

Refers to the inaugural leader of a republic or a nation's head of state, often noted for setting precedents in governance.

California

is a state located on the west coast of the United States, known for its diverse geography, climate, and the entertainment industry.

Swann V. Charlotte-Mecklenburg

A landmark 1971 Supreme Court decision that upheld busing as a legitimate means to achieve integration of public schools in the United States.

Segregation

The enforced separation of different racial groups in a country, community, or establishment, historically prevalent in the United States and South Africa.