The Everest Company provides landscaping services to corporations and businesses. All its landscaping work requires Everest to use landscaping equipment. Its landscaping equipment has the capacity to do 11,000 hours of landscaping work. It currently anticipates getting orders that would utilize 10,400 hours of equipment time. Rainier charges $110 per hour for landscaping work. Cost information for the current expected activity level is as follows: E, (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 Keenan. Next, calculate the contnibution margin af the special order Contribution Margin for Contribution Margin for Keenan Corporation Landscaping Work Existing Landscape 1144000 Revenues Variable costs: 676000 Landscaping costs Marketing costs Total variable costs Contribution margin Determine the contribution margin per hour for existing customers. (Enter amounts to the nearest cent.) 80080 756080 387920 Contribution margin per hour for existing customers - Choose from any list or enter any number in the input fields and then continue to the next question. The Everest Company provides landscaping services to corporations and businesses. All its landscaping work requires Everest to use landscaping equipment. Its landscaping equipment has the capacity to do 11,000 hours of andscaping w ork. It cu ently anticipates getting orders that would utilize 10,400 hours of equipment time. Rainier charges $1 10 per hour o landscaping work. Cost information fo e ent expected a ty level is as follows: EEB (Click the icon to view the cost information.) Read the requirement Contribution margin 387920 Determine the contribution margin per hour for existing customers. (Enter amounts to the nearest cent.) Contribution margin per hour for existing customers per hour Determine the contribution margin per hour for Keenan's order and then determine whether Everest should do any landscaping work for Keenan Corporation. (Enter amounts to the nearest cent) Contribution margin per hour for Keenan's onder per hour To maximize operating income, Everest should allocate as much of its capacity to customers who generate the contribution margin per unit of the constraining resource. That is, Everest should first allocate equipment capacity to and only the balance to hours of equipment capacity to existing customers and Everest maximizes total contribution margin by allocating to Keenan Corporation, for a total contribution margin of $ Choose from any list or enter any number in the input fields and then continue to the next question. ices to corporations and businesses. All its landscaping work requires Everest to use landscaping equipment. Its lan sgetting orders that would utilize 10,400 hours of equipment time. Rainier charges $110 per hour for landscaping work. C dscap Data Table Revenues ($110 x 10,400 hours) Variable landscaping costs (including materials and labor), which vary $ 1,144,000 676,000 with the number of hours worked ($65 per hour x 10,400 hours) Fixed landscaping costs Variable marketing costs (7% of revenues) Fixed marketing costs Total costs Operating income 88,000 80,080 75,000 919,080 224,920 unt re Print Done omers ontribution margin of $ the input fields and then continue to the next question. The Everest Company provides landscaping services to corporations and businesses. All its landscaping work requires Everest to use landscaping equipment. Its landscaping equipment has the capacity to do 11,000 hours of landscaping work. It currently anticipates getting orders that would utilize 10,400 hours of equipment time. Rainier charges $110 per hour for landscaping work. Cost information for the current expected activity level is as follows: E, (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 Keenan. Next, calculate the contnibution margin af the special order Contribution Margin for Contribution Margin for Keenan Corporation Landscaping Work Existing Landscape 1144000 Revenues Variable costs: 676000 Landscaping costs Marketing costs Total variable costs Contribution margin Determine the contribution margin per hour for existing customers. (Enter amounts to the nearest cent.) 80080 756080 387920 Contribution margin per hour for existing customers - Choose from any list or enter any number in the input fields and then continue to the next question. The Everest Company provides landscaping services to corporations and businesses. All its landscaping work requires Everest to use landscaping equipment. Its landscaping equipment has the capacity to do 11,000 hours of andscaping w ork. It cu ently anticipates getting orders that would utilize 10,400 hours of equipment time. Rainier charges $1 10 per hour o landscaping work. Cost information fo e ent expected a ty level is as follows: EEB (Click the icon to view the cost information.) Read the requirement Contribution margin 387920 Determine the contribution margin per hour for existing customers. (Enter amounts to the nearest cent.) Contribution margin per hour for existing customers per hour Determine the contribution margin per hour for Keenan's order and then determine whether Everest should do any landscaping work for Keenan Corporation. (Enter amounts to the nearest cent) Contribution margin per hour for Keenan's onder per hour To maximize operating income, Everest should allocate as much of its capacity to customers who generate the contribution margin per unit of the constraining resource. That is, Everest should first allocate equipment capacity to and only the balance to hours of equipment capacity to existing customers and Everest maximizes total contribution margin by allocating to Keenan Corporation, for a total contribution margin of $ Choose from any list or enter any number in the input fields and then continue to the next question. ices to corporations and businesses. All its landscaping work requires Everest to use landscaping equipment. Its lan sgetting orders that would utilize 10,400 hours of equipment time. Rainier charges $110 per hour for landscaping work. C dscap Data Table Revenues ($110 x 10,400 hours) Variable landscaping costs (including materials and labor), which vary $ 1,144,000 676,000 with the number of hours worked ($65 per hour x 10,400 hours) Fixed landscaping costs Variable marketing costs (7% of revenues) Fixed marketing costs Total costs Operating income 88,000 80,080 75,000 919,080 224,920 unt re Print Done omers ontribution margin of $ the input fields and then continue to the next