The Nature Company provides landscaping services to corporations and businesses. All its landscaping work requires Nature to use landscaping equipment. Its landscaping equipment has the capacity to do 13,000 hours of landscaping work. It currently anticipates getting orders that would utilize 11.000 hours of equipment time. Nature charges $90 per hour for landscaping work. Cost information for the current expected activity level is as follows: Begin by completing an analysis, and start by showing the computation of the company's contribution margin without the landscaping work from Fiona. 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 Contribution Margin for - Existing Landscape Fiona Corporation Data Table Customers Landscaping Work Revenues Revenues ($90 * 11,000 hours) S 990,000 Variable costs: Variable landscaping costs (largely labor), which vary with the Landscaping costs number of hours worked (S60 per hour * 11,000 hours) 660,000 88,000 Marketing costs Fixed landscaping costs Variable marketing costs (7% of revenues) 69 300 Total Variable costs 70,000 Fixed marketing costs Contribution margin 887,300 Total costs Determine the contribution margin per hour for existing customers. (Enter amounts to the nearest cent.) 102,700 Operating income = Contribution margin per hour for existing customers per hour Determine the contribution margin per hour for Fiona's order and then determine whether Nature should do any landscaping work for Fiona Corporation. (Enter amounts to the nearest cent.) Requirement s Contribution margin per hour for Fiona's order per hour To maximize operating income, Nature should allocate as huch of its capacity to customers who generate the contribution margin per unit of the constraining resource. That is, Nature should first allocate equipment capacity to and only the balance to In order to fill its available capacity, Nature's salespersons are trying to find new business, Fiona Corporation wants Nature to do 2,700 hours of landscaping work for $64 per hour. Variable landscaping costs for the Fiona Corporation order are $52 per hour variable marketing costs are 7% of revenues Nature can accept as much or as little of the 2,700 hours of Fiona's landscaping work. What should Nature Corporation do? hours of equipment capacity to existing customers and Nature maximizes total contribution margin by allocating to Fiona Corporation, for a total contribution margin of Print Print Done