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Andrew Sinclair operates a lawn care business. He offers customers a choice of two services. The first service, basic lawn care, includes mowing and
Andrew Sinclair operates a lawn care business. He offers customers a choice of two services. The first service, basic lawn care, includes mowing and trimming of all lawn areas. Andrew bills these customers $39 per hour, and his variable cost for providing this service is $27 per hour. Andrew also offers deluxe lawn care services, which includes flower bed maintenance in addition to basic lawn care. He bills his customers $58 per hour for this service, and his variable cost for providing this service is $30 per hour. Andrew currently spends 1 hour of his time providing deluxe lawn care services for every 5 hours of basic lawn care services. Andrew also incurs $44,000 in fixed costs per year running his business. (a) Your answer is correct. What is Andrew's profit equation? (Use contribution margin per hour to calculate the answer.) 12 x 5 x)+($ 28 x 1 x)-$
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