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 Donna. Next, calculate the contribution margin of the special order. (Calculate the contribution margin for the special order assuming there are no constraints on landscaping hours.) Contribution Margin for Existing Landscape Customers Revenues Variable costs: Landscaping costs Marketing costs Total variable costs Contribution margin k my instructor Data table Requirement In order to fill its available capacity, Forester's salespersons are trying to find new business. Donna Corporation wants Forester to do 2,500 hours of landscaping work for $62 per hour. Variable landscaping costs for the Donna Corporation order are $48 per hour and variable marketing costs are 6% of revenues. Forester can accept as much or as little of the 2,500 hours of Donna's landscaping work. What should Forester Corporation do? - Revenues ($95 9,500 hours) Variable landscaping costs (largely labor), which vary with the number of hours worked ($70 per hour 9,500 hours) Fixed landscaping costs Variable marketing costs (6% of revenues) Fixed marketing costs Total costs Operating income Print Done Print Done $ 902,500 665,000 95,000 54,150 71,000 885,150 $ 17,350 Clear all Check answer