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The Crestone Company provides landscaping services to corporations and businesses An ts landscaping work requires Crestone to use landscaping equipment. its landscaping equipment hat hour
The Crestone Company provides landscaping services to corporations and businesses An ts landscaping work requires Crestone to use landscaping equipment. its landscaping equipment hat hour for landscaping work. Cost information for the currerit expected activity levet is as foltows:
Click the ioon to view the cost information.
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Begin by completing an analysis, and start by showing the computation of the compwnys operobry moome without the spedal onser Nest, caloulate operating income with the special order, and then determine whether Crestone should sobept or reject the special order.
tabletableWitheitOneTime OnlySpeciel OrdertablewithOneTime OnilySpecisi OrderRelevant revenuesRelevant variable costs:Landscaping costs,,Marketing costs,,Total relevant costs,,Relevant operating income,,
Crestone should the special order from Pamela Corporation because operating income will by
Data table
tableRevenues $times hours$tableVariable landscaping costs largely labor which vary with the numberof hours worked $ per hour hoursFixed landscaping costs,,Variable marketing costs of revenuesFixed marketing costs,,Total costs,,Operating income,
Requirement
Crestone has received an order for landscaping work from Pamela Corporation at $ per hour that would require hours of equipment time. Variable landscaping costs for the Pamela Corporation order are $ per hour and variable marketing costs are of revenues. Crestone can either accept the Pamela offer in whole or reject it Should Crestone accept the offer?
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