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g Enabled: Midterm 1 Seved Help Save & Exit Sub Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and
g Enabled: Midterm 1 Seved Help Save & Exit Sub Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $10.0 per hour for each type of service, but lawn maintenance has higher variable costs ($4.0 per hour) than garden maintenance ($2.0 per hour) because of fuel expenses incurred to operate lawn-mowing equipment. All employees are paid a fixed monthly salary. A contribution format income statement for a recent month for the two services appears below. During the month, 8,000 hours of lawn maintenance services and 2,000 hours of garden maintenance were provided 09 Sales Variable expenses Contribution margin Fixed expenses Operating income $ Lown Maintenance 80,000 32,000 Per Garden Per Hour Maintenance Hour $10.0 $20,000 $10.0 $100,000 4.0 4,000 36,000 Total 2.0 48,000 $ 6.0 $16,000 $ 8.0 64,000 31,360 32,640
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