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Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers $15.0 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 $15.0 per hour for each type of service, but lawn maintenance has higher variable costs ($6.0 per hour) than garden maintenance ($3.0 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: Sales Variable expenses Lawn Per Garden Per Maintenance Hour Maintenance Hour Total $ 120,000 $15.0 $ 30,000 $15.0 $ 150,000 48,000 6.0 6,000 54,000 Contribution margin $ 72,000 $ 9.0 $ 24,000 $12.0 96,000 Fixed expenses 26,880 Operating income $ 69,120 Required: 1. Compute the overall CM ratio for the company. Overall contribution margin ratio 64% Shows your responses and what was marked correct and incorrect from your previous attempt. 5 2. Compute the overall break-even point for the company in sales dollars. Overall break-even point $ 42,000 3. Compute the weighted average CM per hour for the company. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Lawn Garden Care Maintenance $ 9.00 $ 12.00 Weighted average CM per hour from your previous attempt. 4. Calculate the overall break-even point for the company in hours. Total break oven point in 2,800 hours led 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 Number of hours 6. Calculate the overall sales in dollars required to earn an after-tax profit of $79,800 if the tax rate is 30%. Sales required to achieve after-tax target profit

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