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The Denali Company provides landscaping services to corporations and businesses. All its landscaping work requires Denali to use landscaping equipment. Its landscaping equipment has
The Denali Company provides landscaping services to corporations and businesses. All its landscaping work requires Denali to use landscaping equipment. Its landscaping equipment has the capacity to do 13,000 hours of landscaping work. It currently anticipates getting orders that would utilize 12,000 hours of equipment time. Denali charges $100 per hour for landscaping work. Cost information for the currerit expected activity level is as follows: (Click the icon to view the cost information.) Read the requirement. Revenues Variable costs: Landscaping costs Marketing costs Total variable costs Contribution Margin for Existing Landscape Contribution Margin for Sophia Corporation Customers Landscaping Work 1200000 780000 750000 852000 Next lete Requirement In order to fill its available capacity, Denali's salespersons are trying to find new business. Sophia Corporation wants Denali to do 2,700 hours of landscaping work for $60 per hour. Variable landscaping costs for the Sophia Corporation order are $48 per hour and variable marketing costs are 6% of revenues. Denali can accept as much or as little of the 2,700 hours of Sophia's landscaping work. What should Denali Corporation do? - X its landsc 13,000 hc time. Den ollows: s contribution order. (Calci ng hours.) or Revenues Print Done 2200000
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