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christicamp4515
christicamp4515
24.12.2019 • 
Business

All its landscaping work requires rainier to use landscaping equipment. its land- scaping equipment has the capacity to do 10,000 hours of landscaping work. it cur- rently 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) variable landscaping costs (including materials and labor), which vary with the number of hours worked ($50 per hour * 9,000 hours) fixed landscaping costs variable marketing costs (5% of revenue) fixed marketing costs total costs operating income $720,000 450,000 108,000 36,000 72,000 666,000 $ 54,000 rainier has received an order for landscaping work from victoria corporation at $60 per hour that would require 2,000 hours of equipment time. variable landscaping costs for the victoria corporation order are $50 per hour and variable marketing costs are 5% of revenues. rainier can either

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