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Oriole Horticulture provides and maintains live plants in office buildings. The company's 888 customers are charged $ 36 per month for this service, which includes

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Oriole Horticulture provides and maintains live plants in office buildings. The company's 888 customers are charged $ 36 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 $ 2,354 each month to maintain its fleet of four service vans and $3,130 each month in salaries. Oriole pays a bookkeeping service $ 2 per customer each month to handle all invoicing and accounting functions. What is the expected monthly operating income if 184 customers are added? Operating income $ e Textbook and Media Attempts: 0 of 3 used Submit Answer Save for Later (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 $ 10,356 per year plus S1 per customer per month Option 2: Hire a part-time bookkeeper for $ 18,416 per year to handle the invoicing and simple accounting. He would need to pay $ 6,300 per year to have taxes and year-end financial statements prepared Compare the current bookkeeping cost with the two options at customer levels of 888, 1,637, and 1,698. 888 1,637 1,698 $ $ $ $ Current cost $ $ $ Option 1 $ $ $ Option 2

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