The Forester Company provides landscaping services to corporations and businesses. Al its landscaping work requires Forester to use landscaping equipment. Its landscaping equipment has the capacity to do 10,000 hours of landscaping work. it currently anticipates getting orders that would utice 9,500 hours of equipenent time. Forester charges $95 per hour for landscaping work Cost information for the current expected activity level is as follows: (Click the icon to view the cost informaton) Read the requirement Bogin by completing an analysis, and start by showing the computation of the company's contribution margin without the landscaping work from Nancy. Naxt, calculate the contribution margin o the special arder. (Calculate the contribution margin for the special order assuming there are no constraints on landscaping hours) Requirement In order to fill its avalable capacity. Forester's salespersons are trying to find now business. Nancy Corporation wants Forester to do 2,600 hours of landscaping work for $62 per hour. Variable landscaping costs for the Nancy Corporation order ace $42 per hour and variable marketing costs are 6% of revenues. Forester can accept as much or as little of the 2,600 hours of Nancys landscaping work. What should Forester Corporation do? Data table The Forester Company provides landscaping services to corporations and businesses. All its landscaping work requires Forester to use landscaping equipment. Its landscaping equipment has the capacity to do 10,000 hours of landscaping work. It currently anticipates getting orders that would utilize 9,500 hours of equipment time. Forester charges $95 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 Nancy. Next, calculate the contribution margin of the special order. (Calculate the contribution margin for the special order assuming there are no constraints on landscaping houre.) Id businesses. All its landscaping work requires Forester to use landscaping equipment. Its landscaping equipment has the getting orders that would utilize 9,500 hours of equipment time. Forester charges $95 per hour for landscaping work. Cost Data table In order to fill its available capacity, Forester's salespersons are trying to find new business. Nancy Corporation wants Forester to do 2,600 hours of landscaping work for $62 per hour. Variable landscaping costs for the Nancy Corporation order are $42 per hour and variable marketing costs are 6% of revenues. Forester can accept as much or as little of the 2,600 hours of Nancy's landscaping work. What should Forester Corporation do
