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The Crestone Company provides landscaping services to corporations and businesses. All its landscaping work requires Crestone to use landscaping equipment. Ils landscaping equipment has the

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The Crestone Company provides landscaping services to corporations and businesses. All its landscaping work requires Crestone to use landscaping equipment. Ils landscaping equipment has the capacity to do 11.500 hours of landscaping work. It is currently utilizing 10,500 hours of equipment time Creslone Charges 5110 per hour for landscaping work. Cosi informalion for the current aclivily level is as follows: Click the icon to view the coat information Read the requirement Begin by determining the change in operating Income it Crestone accepts the specie order. (If a box is not used in the table leave the box empty, do not select a label or enter a zero. Use parentheses or a minus sign to enter a decrease in operating Income.) X Less: Data table 5.1.155,000 Increase (decrease) in operating income order accepting the one-time special Revenues ($110 x 10,500 hours) Variable landscaping costs (including materials and labor), which vary with the number of hours worked (875 per hour x 10,500 hours Fixed landscaping costs Variable marketing costs (7% of revenues 787,500 105,000 -X Requirement 80,650 68,000 Fixed marketing costs 1.041,350 Total costs $ 113,850 Crestone has just received a one time only special order for landscaping work from Water Corporation at 556 per hout that would require 1,000 hours of equipment time Should Crestond accept the offer even though revenue per hour is less than Crestone's landscaping cost of $5 per hour [$787.500 S105,000) / 10,500 hours;]. No marketing costs will be necessary for the one-time only spec al order. Operating income Print Done Print Done Clear all Check

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