Henley Horticulture provides and maintains live plants in office buildings. The company”s 850 customers are charged $30 per month for this service, which includes weekly watering visits. The variable cost to service a customer”s location is $17 per month. The company incurs $2,000 each month to maintain its fleet of four service vans and $3,000 each month in salaries. Henley pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions.
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