Assume you had invested $1,000 in a lawn mower to set up a lawn mowing business for the summer. During the first week, you could choose either to mow the grounds at a housing development for $1,400 or to paint a garage for $1,360. Each job would take one week. You cannot do both. You would incur additional costs of $160 for lawn mowing and $80 for garage painting. These costs include $60 under each alternative for transportation to the job. Prepare a schedule showing the net benefit or advantage of selecting one alternative over the other. (This is all information provided)
Lawn mow bus. service Painting garage Differential
Revenues $1,400 $1,360 $40
Cost $160 $80 $80
Net benefit in favor (40)
of lawn service