Lamphere Lawncare provides lawn and gardening services. The price of the service is fixed at a flat rate for each service, and most costs of providing the service are the same, given the similarity in the lawns and lots. The owner budgets income by estimating two factors that fluctuate with the economy: the contribution margin associated with each service call and the number of customers who will request lawn service. Looking at next year, the owner develops the following estimates of contribution margin (price less variable cost of the service, including labor) and the estimated number of service calls. Although the owner understands that it is not strictly true, the owner assumes that the cost of fuel and the number of customers are independent. Contribution Margin per Service CallScenario(Price − Variable cost)Number of Service CallsExcellent$ 3010,200Fair207,800Poor125,500 In addition to the variable costs of service, the owner estimates that other costs are $43,000 plus $8 for each service call in excess of 3,000 calls. Annual administrative and marketing costs are estimated to be $25,000 plus 15 percent of the contribution margin. Recent economic events in the local area have led the owner of Lamphere Lawncare to revise some estimates in budgeting the operating income for the following year. First, unexpected competition has depressed prices. The revised estimates for the contribution margin appear as follows. At these new assumed prices, the owner believes there is no reason to revise the estimated number of service calls. Contribution Margin per Service CallScenario(Price − Variable cost)Number of Service CallsExcellent$ 2510,200Fair187,800Poor105,500 The second revision the owner has to make is to incorporate higher prices for the variable factors included in "other costs." At the same time, the fixed other costs are expected to be significantly lower. Specifically, the owner now estimates that other costs are $10,000 plus $20 for each service call in excess of 6,000 calls. 1. Which of the following scenarios results in the highest operating profit? 2. Which of the following scenarios results in a negative operating profit? 3. What are the Marketing & Admin. Costs for 10,200 service calls with a $10 contribution margin per service call? 4. What is the operating profit for 7800 service calls with an $18 contribution margin per service call? 5. Which of the following scenarios results in the lowest operating profit?