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1167500 The Nature Company provides landscaping services to corporations and businesses All its landscaping work requires Nature to use landscaping equipment. Its landscaping equipment has

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1167500 The Nature Company provides landscaping services to corporations and businesses All its landscaping work requires Nature to use landscaping equipment. Its landscaping equipment has the capacity to do 12,500 hours of landscaping work. It currently anticipates getting orders that would utilize 11 800 hours of equipment time Nature charges S105 per hour for landscaping work Cost Information for the current expected activity level is as follows Cick the icon to view the cost information Required Customers Landscaping Work Revenues 1239000 Variable costs Landscaping costs 802400 500000 Marketing costs Total variable costs 376650 Chimen 605125 Choose from any list or enter any number in the input fields and then continue to the next question 51950 58375 654350 558375 the Nature Company provides landscaping services to corporations and businesses. All its landscaping work requires Nature to use landscaping equipment. Its landscaping as the capacity to do 12 500 hours of landscaping work. It currently anticipates getting orders that would utilize 11.800 hours of equipment time Nature charges $105 per hou andscaping work Cost information for the current expected activity level is as follows Click the icon to view the cost information) Resulted Determine the contribution margin per hour for existing customers (Enter amounts to the nearest cent.) Contribution margin per hour for existing customers per hour Determine the contribution margin per hour for Benton's order and then determine whether Nature should do any landscaping work for Benton Corporation (Enter amounts to the nearest cont) - Contribution margin per hour for Bentor's order nar per hour and only To maximize operating income, Nature should allocate as much of its capacity to customers who generate the contribution margin per unit. That is, Nature should first allocate equipment capacity to the balance to Nature maximizes total contribution margin by allocating to Banton Corporation, for a total contribution margin of s hours of equipment cadacity to existing customers an Choose from any ust or enter any number in the input fields and then continue to the next question - i Cost information Int. Its harges vides 2.500 h Informa ew the 1,239,000 802,400 income Revenues (5105 x 11,800 hours) Variable landscaping costs (including materials and labour), which vary with the number of hours worked (568 per hour x 11,800 hours) Fixed landscaping costs Variable marketing costs (5% of revenues) Fixed marketing costs Total costs Operating income er unit. THE 140,000 61.950 70.000 1,074,350 tal contribu $ 164,650 existing n Corporati st or enter Print Done FI 10 In order to fill it available capacity. Nature's salespersons are trying to find new business. Benton Corporation wants Nature to do 5,000 hours of landscaping work for $76 per hour. Variable servicing costs for the Benton Corporation order are $40 per hour and variable marketing costs are 5% of revenues. Nature can accept as much or as little of the 5,000 hours of Benton's landscaping work. What should Nature Corporation do? F TO TOTO Print Done

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