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 11,000 hours of landscaping work. It currently anticipates getting orders that would utilize 10,400 hours of equipment time. Mitchell charges $110 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 Lawson. 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 es $11 to view nt. an a ution Calouls Tequires Mitchell to use landscapin 11.000 hours of landscaping work. It currently anticipates getting orders that would utilize 10.400 h Data table Revenues ($110 x 10,400 hours) Variable landscaping costs (including materials and labor), which vary with the number of hours worked ($64 per hour x 10,400 hours) Fixed landscaping costs Variable marketing costs (3% of revenues) Fixed marketing costs Total costs Operating income Print Done - X $ 1,144,000 665,600 m Lav 91,000 s on la 34,320 75,000 865,920 $ 278,080 des landscaping services to corporations and businesses. All its landscaping work requires Mitchell to use lan the capacity to do 11,000 hours of landscaping work. It currently anticipates getting orders that would utilize 1 per hour for landscaping work. Cost information for the current expected activity level is as follows: he cost information.) Requirement - X ysis argi In order to fill it available capacity, Mitchell's salespersons are trying to find new business. Lawson Corporation wants Mitchell to do 4,400 hours of landscaping work for $74 per hour. Variable servicing costs for the Lawson Corporation order are $48 per hour and variable marketing costs are 3% of revenues. Mitchell can accept as much or as little of the 4,400 hours of Lawson's landscaping work. What should Mitchell Corporation do? ork stra Print Done