Please complete the blank boxes
The Mitchell Company provides landscaping services to corporations and businesses. All its landscaping work requires Mitchell to use landscaping equipment. Its landscaping equipment has the capacity to do 10,500 hours of landscaping work. It currently anticipates getting orders that would utlize 10,000 hours of equipment time. Mitchell charges $105 per hour for landscaping work. Cost information for the current expected activity level is as follows (Click the icon to view the cost information.) Read the requirement Begin by completing an analysis, and start by showing the computation of the company's contribution margin without the landscaping work from Lawson. Next, calculate the contribution margin of the special order. (Calculate the contribution margin for the special order assuming there are no oonstraints on landscaping hours.) Contribution Margin for Existing Landscape Customers Revenues Variable costs Landscaping costs Marketing costs Tntal varinhle onsts Enter any number in the edit fields and then click Check Answer landscaping equipment has the capacity to do 10,500 hours of landscaping work. It currently anticipates getting orde time. Mitchell charges $105 per hour for landscaping work. Cost information for the current expected activity level is EE(Click the icon to view the cost information.) drations and businesses. All its landscaping work requin Read the requirement Contribution Margin for Existing Landscape Customers Revenues Variable costs: Landscaping costs Marketing costs Total variable costs Contribution margin Enter any number in the edit fields and then click Check Answer. Clear All parts remaining 5 JUN 15 LO uuy anucip getting orders that would or landscaping work. Cost information for the current expected activity level is as follows: prmation.) i Requirement In order to fill it available capacity, Mitchell's salespersons are trying to find new business. Lawson Corporation wants Mitchell to do 3,500 hours of landscaping work for $80 per hour. Variable servicing costs for the Lawson Corporation order are $44 per hour and variable marketing costs are 6% of revenues. Mitchell can accept as much or as little of the 3,500 hours of Lawson's landscaping work. What should Mitchell Corporation do? Print Done click Check Answer. vides landscaping services to corporations and businesses. All its landscaping work requires Mitchell to use landscap FAA A A0000 Data Table Revenues ($105 x 10,000 hours) 1,050,000 Variable landscaping costs (including materials and labor), which vary 580,000 with the number of hours worked ($58 per hour x 10,000 hours) X Fixed landscaping costs 110,000 Variable marketing costs (6% of revenues) 63,000 68,000 Fixed marketing costs 821,000 Total costs 229,000 Operating income Done Print Ch Clear All
