Part $1$ of $2$

Points: $0$ of $1$

The Mitchell Company provides landscaping services to corporations and businesses. All its landscaping work requires Mitchell to use landscaping equipment. Its landscaping equipment has the capacity to do $13,000$ hours of landscaping work. It is currently utilizing $10,500$ hours of equipment time. Mitchell charges $$110$ per hour for landscaping work. Cost information for the current activity level is as follows:

Begin by determining the change in operating income if Mitchell accepts the special order. $($If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero. Use parentheses or a minus sign to enter a decrease in operating income.$)$

$$

Le:

Increase $($decrease$)$ in operating income by accepting the one$-$time special order

Requirement

Mitchell has just received a one$-$time only special order for landscaping work from Avery Corporation at $$60$ per hour that would require $2,500$ hours of equipment time. No marketing costs will be necessary for the one$-$time only special order. Should Mitchell accept the offer even though revenue per hour is less than Mitchell's landscaping cost of $$85$ per hour hours$)].$

Data table

Revenues $($ $$11010,500$ hours$)$

Variable landscaping costs $($largely labor$),$ which vary with the number of hours worked $($ $$75$ per hour $10,500$ hours$)$

Fixed landscaping costs

$\backslash$table$[[$$$1,155,000$