Tree and Lawn USA does 35 landscape designs for its customers each year. Estimate the total cost for the Hosta Office park job if Tree and Lawn USA allocated costs of the Landscape Design activity based on the number of landscape designs rather than the number of landscape design-hours. How much would Tree and Lawn USA bid to perform the job? Which cost driver do you prefer for the Landscape Design activity? Why? How much would Tree and Lawn USA bid to perform the job?

You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase