Landscaping Company

ProHub Comment

This is a straightforward break-even analysis case requiring candidates to calculate the total losses across business lines, then determine how much incremental contribution margin from snow removal is needed to offset those losses. The case tests basic financial acumen and the ability to work backwards from a company's negative position using contribution margin as the profit driver.

Estimated Time 15 minutes
Difficulty Easy
Source PeterK
50 / 100
Bluestone, a landscaping company, incurred losses in 2022. They have hired your team to help them out. Your manager has tasked you with calculating the additional revenue Bluestone needs to generate from snow removal services to break even.

Clarifying Information

  1. Exhibit 1. Revenue and Profits by Business Line, 2022
  2. We can assume profit margin for snow removal services to be contribution margin