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Please help!!!! The Everest Company provides landscaping services to corporations and businesses. All its landscaping work requires Everest to use landscaping equipment. Its landscaping equipment
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The Everest Company provides landscaping services to corporations and businesses. All its landscaping work requires Everest to use landscaping equipment. Its landscaping equipment has the capacity to do 11,500 hours of landscaping work. It is currently utilizing 11,000 hours of equipment time. Everest charges $90 per hour for landscaping work. Cost information for the current activity level is as follows: (Click the icon to view the cost information.) Read the requirement. Begin by determining the change in operating income if Everest 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.) 25000 Revenues Variable landscaping costs Requirement Less: Increase (decrease) in operating income by accepting the one-time special order Everest has just received a one-time only special order for landscaping work from Water Corporation at $50 per hour that would require 500 hours of equipment time. No marketing costs will be necessary for the one-time only special order. Should Everest accept the offer even though revenue per hour is less than Everest's landscaping cost of $68 per hour [(3660,000 + $88,000) + 11,000 hours) i Data Table Print Done $ 990,000 Revenues ($90 * 11,000 hours) Variable landscaping costs (largely labor), which vary with the number of hours worked (S60 per hour * 11,000 hours) 660,000 Fixed landscaping costs 88,000 Variable marketing costs (4% of revenues) 4 39,600 65,000 Fixed marketing costs Total costs 852,600 Choose from any list or er $ 137,400 Operating income ? 1 part remaining Final Check Print Done
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