11-2 The Rainier Company provides landscaping services to corporations and businesses. 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) Fixed landscaping costs $720,000 Variable landscaping costs (including materials and labor), which vary with the number of hours worked ($50 per hour x 9,000 hours) 450,000 108,000 36,000 72,000 666,000 $ 54,000 Variable marketing costs (5% of revenue) Fixed marketing costs Total costs Operating income 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 accept the Victoria offer in whole or reject it. Should Rainier accept the offer?