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 15,000 hours of landscaping work. It currently anticipates getting orders that would utilize 13,500 hours of equipment time. Mitchell charges $100 per hour for landscaping work. Cost information for the current expected activity level is as follows:

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 15,000 hours of landscaping work. It currently anticipates getting orders that would utilize 13,500 hours of equipment time. Mitchell charges $100 per hour for landscaping work. Cost information for the current expected activity level is as follows EEB (Click the icon to view the cost information.) Read the requirement. Contribution Margin for Existing Landscape Customers Contribution Margin for Benton Corporation Landscaping Work Revenues Variable costs Landscaping costs Marketing costs Total variable costs Contribution margin 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 Benton's order and then determine whether Mitchell should do any landscaping work for Benton Corporation. (Enter amounts to the nearest cent.) z Contribution margin per hour for Benton's order per hour To maximize operating income, Mitchell should allocate as much of its capacity to customers who generate the contribution margin per unit of the constraining resource. That is, Mitchell should first allocate equipment capacity to and only the balance to Mitchell maximizes total contribution margin by allocating hours of equipment capacity to existing customers and to Benton Corporation, for a total contribution margin of $ Choose from any list or enter anv number in the input fields and then continue to the next question Data Table Revenues ($100 x 13,500 hours) Variable landscaping costs (including materials and labor), which vary 1,350,000 702,000 with the number of hours worked ($52 per hour x 13,500 hours) Fixed landscaping costs Variable marketing costs (3% of revenues) Fixed marketing costs Total costs Operating income 110,000 40,500 70,000 922,500 427,500 Requirement ariable cos ution mardIn order to fill it available capacity, Mitchell's salespersons are trying to find new ine the co business. Benton Corporation wants Mitchell to do 4,500 hours of landscaping work for $75 per hour. Variable servicing costs for the Benton Corporation order are $42 per hour and variable marketing costs are 3% of revenues. Mitchell can accept as much or as little of the 4,500 hours of Benton's landscaping work. What sting custor should Mitchell Corporation do? ine the co r Rantnn y landscapi Print Done 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 15,000 hours of landscaping work. It currently anticipates getting orders that would utilize 13,500 hours of equipment time. Mitchell charges $100 per hour for landscaping work. Cost information for the current expected activity level is as follows EEB (Click the icon to view the cost information.) Read the requirement. Contribution Margin for Existing Landscape Customers Contribution Margin for Benton Corporation Landscaping Work Revenues Variable costs Landscaping costs Marketing costs Total variable costs Contribution margin 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 Benton's order and then determine whether Mitchell should do any landscaping work for Benton Corporation. (Enter amounts to the nearest cent.) z Contribution margin per hour for Benton's order per hour To maximize operating income, Mitchell should allocate as much of its capacity to customers who generate the contribution margin per unit of the constraining resource. That is, Mitchell should first allocate equipment capacity to and only the balance to Mitchell maximizes total contribution margin by allocating hours of equipment capacity to existing customers and to Benton Corporation, for a total contribution margin of $ Choose from any list or enter anv number in the input fields and then continue to the next question Data Table Revenues ($100 x 13,500 hours) Variable landscaping costs (including materials and labor), which vary 1,350,000 702,000 with the number of hours worked ($52 per hour x 13,500 hours) Fixed landscaping costs Variable marketing costs (3% of revenues) Fixed marketing costs Total costs Operating income 110,000 40,500 70,000 922,500 427,500 Requirement ariable cos ution mardIn order to fill it available capacity, Mitchell's salespersons are trying to find new ine the co business. Benton Corporation wants Mitchell to do 4,500 hours of landscaping work for $75 per hour. Variable servicing costs for the Benton Corporation order are $42 per hour and variable marketing costs are 3% of revenues. Mitchell can accept as much or as little of the 4,500 hours of Benton's landscaping work. What sting custor should Mitchell Corporation do? ine the co r Rantnn y landscapi Print Done