• LMN Services provides landscaping services. Calculate the direct costs, fixed costs, variable costs, and total operating costs for servicing a client based on the following data:
  • Direct labor costs: $10,000 for the client project
  • Equipment depreciation (fixed): $2,000 per year
  • Fuel expenses (variable): $500 plus $100 per day of service
  • Insurance premiums (fixed): $1,200 per year
  • Maintenance costs (variable): $300 per client project.