Columbia Corp. provides landscaping services to Hotels and Conference centers. All its landscaping work requires using specialized equipment and Columbia Corp has the capacity to provide 12,000 hours of landscaping work per month. It currently has contracts for 11,000 hours and it charges $90 per hour for landscaping work.

Cost information for the current activity level is as follows:

Revenues: 90 X 11,000 = $990,000 Variable cost per hour: $60 Fixed costs: $88,0000 Variable marketing costs: 4% of revenues Fixed marketing costs: $68,000

(a) Assume instead that the order from Aloha Inc. is not a one-time special. Meaning, Aloha Inc. will require 500 hours every month for which Aloha Inc. is willing to pay $65 per hour. Should Columbia Corp accept the order? Clearly show your work