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Current Attempt in Progress Blossom Horticulture provides and maintains live plants in office buildings. The company's 870 customers are charged $37 per month for this

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Current Attempt in Progress Blossom Horticulture provides and maintains live plants in office buildings. The company's 870 customers are charged $37 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $17 per month. The company incurs $2,206 each month to maintain its fleet of four service vans and $3,286 each month in salaries. Blossom pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions. (a) Mr. Blossom is exploring options to reduce the annual bookkeeping costs. Option1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $10,290 per year plus $1 per customer per month. Option2: Hire a part-time bookkeeper for $19,976 per year to handle the invoicing and simple accounting. He would need to pay $5,600 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 870, 1,839, and 1,918. 1,839 1,918 ) 41413 29032 Current cost $ & $ ' $ L 3 s ' 235 5 1 33306 Option 1 x$ : R 2053 || o [ 20536 || (\\)Option2 $ 'Ll 20230 l $ \

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