Homework answers / question archive / Three college students consider the option of forming a lawn care and landscaping business during their summer vacation

Three college students consider the option of forming a lawn care and landscaping business during their summer vacation

Economics

Share With

Three college students consider the option of forming a lawn care and landscaping business during their summer vacation. They estimate the following costs:

Insurance                                       $ 3,300 for the summer

Equipment Rental Fees                 $ 1,500 for the summer

Fuel and Supplies                          $ 5 per lawn

Miscellaneous Expenses           $ 2 per lawn

Their projected revenue depends on the number of lawns serviced. The price per job is $50. The going wage for a typical unskilled college student is about $4,500 for the summer months. Realistically, the small business should expect to service about 300 lawn jobs during the summer. Should the three students launch the business? Why or why not?