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Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $25.0 per hour for each

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Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $25.0 per hour for each type of service, but lawn maintenance has higher variable costs ($15.0 per hour) than garden maintenance ($7.5 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: Lawn Maintenance $ 200,000 120,eee Per Garden Per Hour Maintenance Hour Total $25.0 $50,000 $25.9 $ 250, eee 15. 15,000 7.5 135, eee Sales Variable expenses Contribution margin $ 88,eee $10.0 $ 35,000 $17.5 115,00 Fixed expenses 32,200 Operating income $ 82,800 Required: 1. Compute the overall CM ratio for the company. Overall contribution margin ratio 48 % 2. Compute the overall break-even point for the company in sales dollars. Overall break-even point $ 70,000 3. Compute the welghted-average CM per hour for the company. (Do not round Intermedlate calculations. Round your answers to 2 decimal places.) Lawn Care $ 18.00 Garden Maintenance X Weighted average CM per hour 4. Calculate the overall break-even point for the company in hours. Total break-even point in hours 2.500 hours 5. At the overall break-even point in total hours, how many hours of each service must be provided for the company to break-even? Lawn Care Garden Maintenance 2,500 Number of hours 6. Calculate the overall sales in dollars required to earn an after-tax profit of $76,160 if the tax rate is 30%. Sales required to achieve after-tax target profit

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