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Palmetto Tree Service is a leading seller of trees to homeowners in the Southwest US. The company sells the trees for $300 each, which includes
Palmetto Tree Service is a leading seller of trees to homeowners in the Southwest US. The company sells the trees for $300 each, which includes installation. Davis Griffin, the company's owner, purchases the bushes from a grower at a cost of $85 per tree. The variable cost for installation is $75 per tree. Last year the company sold and installed 10,000 trees and generated operating income of $504,000. If the company had sold only 9,525 trees, what would operating income have been? Assume that all costs other than the cost of the tree and installation are fixed. ROUND YOUR ANSWER TO WHOLE DOLLARS
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