Oriole Horticulture provides and maintains live plants in office buildings. The company's 854 customers are charged $39 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 $2,308 each month to maintain its fleet of four service vans and $3,138 each month in salaries. Oriole pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions. (a) (b) What is the expected monthly operating income if 226 customers are added? Operating income \$ eTextbook and Media (c) Mr. Oriole 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 $10,467 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $19,184 per year to handle the invoicing and simple accounting. He would need to pay $6,600 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 854, 1,100, and 1,150. eTextbook and Media Attempts: 0 of 3 used