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 $12$ comma $500$ hours of landscaping work. It is currently utilizing $11$ comma $000$ hours of equipment time. Denali charges $$90$ per hour for landscaping work. Cost information for the current activity level is as follows:

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Part $1$

Begin by determining the change in operating income if Denali accepts the special order. $($If an input field is not used, leave the input field$($s$)$ empty. Do not select a label or enter a zero. Use parentheses or a minus sign to enter a decrease in operating income.$)$

First row label input

First row number input

Second row label input

Second row number input

Third row label input

Third row number input

Fourth row label input

Fourth row number input

Increase $($decrease$)$ in operating income by accepting the one$-$time special order

Increase $($decrease$)$ in operating income by accepting the one$-$time special order number input

Part $2$

Answer the following questions.

Should Denali accept or reject the special order from Brood Corporation?

If Denali accepted the special order from Brood Corporation, would operating income increase or decrease?

By how much would the operating income increase$($decrease$)?$

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Cost Information

Revenues $($$$9011,000$ hours$)$

$$990,000$

Variable landscaping costs $($including materials and labour$),$ which vary with the number of hours worked $($$$60$ per hour $11,000$ hours$)$

$660,000$

Fixed landscaping costs

$88,000$

Variable marketing costs $(3\%$ of revenues$)$

$29,700$

Fixed marketing costs

$66,000$

Total costs

$843,700$

Operating income

$$146,300$

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