Sunland Horticulture provides and maintains live plants in office buildings. The companys 914 customers are charged $38 per month for this service, which includes weekly watering visits. The variable cost to service a customers location is $17 per month. The company incurs $2,468 each month to maintain its fleet of four service vans and $3,284 each month in salaries. Sunland pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions.

What is the expected monthly operating income if 222 customers are added? Operating income \$ Mr. Sunland 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 $18,698 per year to handle the invoicing and simple accounting. He would need to pay $6,500 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 914,1,286, and 1,458. What is the expected monthly operating income if 222 customers are added? Operating income \$ Mr. Sunland 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 $18,698 per year to handle the invoicing and simple accounting. He would need to pay $6,500 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 914,1,286, and 1,458