The Rainier Company provides landscaping services to corporations and businesses. All its landscaping work requires Rainier...

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The Rainier Company provides landscaping services to corporations and businesses. All its landscaping work requires Rainier 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 9,000 hours of equipment time from existing customers. Rainier charges $80 per hour for landscaping work. Cost information for the current expected activity level is as follows: Revenues ($80 9,000 hours) $720,000 Variable landscaping costs (including materials and labour), which vary with 450,000 the number of hours worked ($50 per hour x 9,000 hours) Fixed landscaping costs Variable marketing costs (5% of revenue) Fixed marketing costs Total costs 108,000 36,000 72,000 666,000 The Rainier Company provides landscaping services to corporations and businesses. All its landscaping work requires Rainier 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 9,000 hours of equipment time from existing customers. Rainier charges $80 per hour for landscaping work. Cost information for the current expected activity level is as follows: Revenues ($80 9,000 hours) $720,000 Variable landscaping costs (including materials and labour), which vary with 450,000 the number of hours worked ($50 per hour x 9,000 hours) Fixed landscaping costs Variable marketing costs (5% of revenue) Fixed marketing costs Total costs 108,000 36,000 72,000 666,000