please be concrete and give the results in problem b with its procedures.
Rich Sawyer runs a landscaping firm. Each year Rich contracts for labor and equipment hours from a local construction company. Once Rich has chosen a capacity option, he cannot change it later. In addition, the cost for each capacity option is fixed. That is, Rich must pay for all labor and equipment hours he contracts for even if he doesn't need them all. Therefore, there are essentially no variable costs. Rich also has information concerning the amount of revenue and the labor and equipment hours needed for the typical" landscaping job. Finally, Rich has identified three possible demand levels and their associated probabilities !!! Click the icon to view three different capacity options given Rich by the construction company Click the icon to view the information concerning the amount of revenue and the labor and equipment hours needed for the "typical landscaping job. ! Click the icon to view three possible demand levels. a. Determine the total fixed costs and the break-even point for each capacity option. What is the maximum number of jobs that can be handled under each capacity option? Fill in the table below (enter your responses as whole numbers and round your response for the break even point up to the next whole number). Capacity Option Labor Hours Equipment Hours Fixed Cost Break Even Point Max. No. of Jobs High capacity 11,000 8,000 $ 405000 180 440 Medium capacity 7,750 7,250 $ 333750 Low capacity 3,500 5,000 $ 202500 148 310 140 b. Calculate the expected financial results under the three demand levels and the expected value for each capacity options. Fill in the table below (enter your responses as whole numbers). Option Financial Result Medium demand Expected Profit High demand Low demand High capacity $ rent capacity options given Rich by the construction company. ation concerning the amount of revenue and the labor and equipment hours needed for the typical" la sible de * More Info the b at can be hand your re to the next wh Option Capacity Option High capacity Medium capacity Low capacity icity Max. No. of J 440 310 140 Labor Hours Equipment Hours 11,000 8,000 7,750 7,250 3,500 5,000 results Fill in the table b Print Done Option Expected Profit High demand Medium demand Low demand CULU M NL ILUCU IUl ule lypildilar possible demand le A More Info and the break-eve nter your responses bf jobs that can be handle point up to the next whol Labo Point Max. No. of Job ity Option acity capacity 440 Job revenue $2,250 Labor hours per job 25 hours Equipment hours per job 10 hours Cost per labor hour $15 per hour Cost per equipment hour $30 per hour 310 acity 140 cial results under the options. Fill in the table belo Print Done Option Exnected Profit information cdicerning the amount of revenue and the labor and equipment hours needed for the typical" land: e possible de i More Info sts and the b at can be handled (enter your re to the next whole Max. No. of Jobs 440 acity Option apacity m capacity apacity Demand Level High demand Medium demand Low demand Number of JobsProbability 370 35% 300 45% 180 20% 310 140 ancial results s). Fill in the table below Print Done Option High demand Medium demand Low demand Expected Profit High capacity
