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Crane Horticulture provides and maintains live plants in office buildings. The company's 858 customers are charged $33 per month for this service, which includes weekly

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Crane Horticulture provides and maintains live plants in office buildings. The company's 858 customers are charged $33 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $19 per month. The company incurs $2.058 each month to maintain its fleet of four service vans and $3,146 each month in salaries. Crane pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions. (b) What is the expected monthly operating income if 200 customers are added? Operating income \$ eTextbook and Media (c) Mr. Crane is exploring options to reduce the annual bookkeeping costs. Mr. Crane is exploring options to reduce the annual bookkeeping costs, Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $10,368 per year plus $1 per customer permonth. Option 2: Hire a part-time bookkeeper for $19,546 per year to handle the imvoicing and simple accounting. He would need to pay $6,560 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 858, 1,252. and 1,286

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