Award:00 points Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company...
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# />want full explanation Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment IMG-0774.jpg 1. Award: 20.00 points Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and garden maintenance. The company charges customers \$16.0 per hour for each type of service, but lawn maintenance has higher variable costs (\$6.4 per hour) than garden maintenance (\$3.2 per hour) because of fuel expenses incurred to operate lawn-mowing equipment. All employees are paid a fixed monthly salary. A contribution format income statement for a recent month for the two services appears below. During the month, 8,000 hours of lawn maintenance services and 2,000 hours of garden maintenance were provided: Lawn Per Garden Per Maintenance Hour Maintenance Hour Total Sales \$ 128,000 \$ 16.0 \$ 32,000 \$ 16.0 \$ 160,000 Variable expenses 51,200 6.4 6,400 3.2 57,600 Contribution margin \$ 76,800 \$ 9.6 \$ 25,600 \$ 12.8 102,400 Fixed expenses 50, 176 Operating income \$ 52,224 Required: 1. Compute the overall CM ratio for the company. Overall contribution margin ratio % 2. Compute the overall break-even point for the company in sales dollars. Overall break-even point 3. Compute the weighted-average CM per hour for the company. (Do not round intermediate calculations. Round your answers to 2 decimal places. Lawn Garden Care Maintenance Weighted average CM per hour 4. Calculate the overall break-even point for the company in hours. Total break-even point in hours hours O 12:52 PM 2020-02-11 ATTACHMENT PREVIEW Download attachment IMG-0775.jpg

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. Q1. overall Contribution margin (CM)=(\$102,400/\$160,000)*100= 64% Q2. Break-even point for the company in sales dollars=... View the full answer

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