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Oriole Horticulture provides and maintains live plants in office buildings. The company's 868 customers are charged $35 per month for this service, which includes weekly

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Oriole Horticulture provides and maintains live plants in office buildings. The company's 868 customers are charged $35 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 $2,044 each month to maintain its fleet of four service vans and $3.140 each month in salaries. Oriole pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions Prepare Oriole's contribution format income statement for the month. Per Unit $ SA $ $ $ (b) What is the expected monthly operating income if 202 customers are added? Operating income $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer 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 $10,362 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $18,018 per year to handle the invoicing and simple accounting. He would need to pay $5,048 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 868, 1,860, and 1,982. 868 1,860 1,982 Current cost $ $ $ $ Option 1 $ $ VA $ Option 2 $ $ $

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