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

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum. should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?