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The Denali Company provides landscaping services to corporations and businesses. All its landscaping work requires Denali to use landscaping equipment. Its landscaping equipment has the
The Denali Company provides landscaping services to corporations and businesses. All its landscaping work requires Denali to use landscaping equipment. Its landscaping equipment has the capacity to do 12,500 hours of landscaping work. It is currently utilizing 12,000 hours of equipment time. Denali charges $100 per hour for landscaping work. Cost information for the current activity level is as follows: B (Click the icon to view the cost information.) Read the requirement. Begin by determining the change in operating income if Denali 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.) Less: Increase (decrease) in operating income by accepting the one-time special order The Denali Company provides landscaping servia hours of landscaping work. It is currently utilizing (Click the icon to view the cost information.) caping equipment has the capacity to do 12,500 x pt activity level is as follows: I Data table Read the requirement. $ 1,200,000 780,000 Jelect a label or enter a zero. Use parentheses or Begin by determining the change in operating inc a minus sign to enter a decrease in operating inca Revenues ($100 * 12,000 hours) Variable landscaping costs (largely labor), which vary with the number of hours worked ($65 per hour * 12,000 hours) Fixed landscaping costs Variable marketing costs (4% of revenues) Fixed marketing costs 96,000 48,000 68,000 Less: 992,000 Total costs $ 208,000 Operating income Increase (decrease) in operating income by accel Print Done The Denali Company provides landscaping services to corporations and businesses. All its landscaping work requires Denali to use landscaping equipment. Its landscaping equipment has the capacity to do 12,500 hours of landscaping work. It is currently utilizing 12,000 hours of equipment time. Denali charges $100 per hour for landscaping work. Cost information for the current activity level is as follows: B (Click the icon to view the cost information.) Read the requirement. Requirement not select a label or enter a zero. Use parentheses or Begin by determining the change in operating income if a minus sign to enter a decrease in operating income.) Denali has just received a one-time only special order for landscaping work from Lorray Corporation at $68 per hour that would require 500 hours of equipment time. No marketing costs will be necessary for the one-time only special order. Should Denali accept the offer even though revenue per hour is less than Denali's landscaping cost of $73 per hour [($780,000 + $96,000) = 12,000 hours)]. Less: Increase (decrease) in operating income by accepting Print Done
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