Question
Metropolitan Rose Service is a leading seller of hybrid tea rose bushes to gardeners in a four-state area. The company sells the rose bushes for
Metropolitan Rose Service is a leading seller of hybrid tea rose bushes to gardeners in a four-state area. The company sells the rose bushes for $45 each, which includes installation. Mike Bothwell, the company's owner, purchases the bushes from a grower at a cost of $17 per bush. The variable cost for installation is $4 per bush. Last year the company sold and installed 8,500 bushes and generated operating income of $104,000. If the company had sold only 8,400 bushes, what would operating income have been? Assume that all costs other than the cost of the bush and installation are fixed. ROUND YOUR ANSWER TO WHOLE DOLLARS.
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