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The Forester Compary provides landscaping services to corporations and besinesses. All its landicaping work requires Forester to use landscaping equmment its land calp equipment has
The Forester Compary provides landscaping services to corporations and besinesses. All its landicaping work requires Forester to use landscaping equmment its land calp equipment has the capacity to do 12,000 hours of landsceping work. It currently anticipates gatting orders that would uailize 11,000 hours of oqupment bime from existing cies Forester charges $90 per hour for lanidscaping work. Cost information tor the curtent expected activity level is as follows (Click the icon to view the cont information) Read the tespuitgment. Begin ty comploting an analysis, and start by shoming the computation of the comparyys operatifg income without the specie order Roul, cascuate operating inconie with ide special order, and then dettrmine whether Forester should accept or rejuct the spocial order. Forestar should the special order from Fiona Corporation because operating income will er to use landscaping 000 hours of equipme Requirement Forester has received an order for landscaping work from Fiona Corporation at $50 per hour that would require 2,700 hours of equipment time. Variable landscaping costs for the Fiona Corporation order are $60 per hour and variable marketing costs are 4% of revenues. Forester can either accept the Fiona offer in whole or reject it. Should Forester accept the offer? The Forester Compary provides landscaping services to corporations and besinesses. All its landicaping work requires Forester to use landscaping equmment its land calp equipment has the capacity to do 12,000 hours of landsceping work. It currently anticipates gatting orders that would uailize 11,000 hours of oqupment bime from existing cies Forester charges $90 per hour for lanidscaping work. Cost information tor the curtent expected activity level is as follows (Click the icon to view the cont information) Read the tespuitgment. Begin ty comploting an analysis, and start by shoming the computation of the comparyys operatifg income without the specie order Roul, cascuate operating inconie with ide special order, and then dettrmine whether Forester should accept or rejuct the spocial order. Forestar should the special order from Fiona Corporation because operating income will er to use landscaping 000 hours of equipme Requirement Forester has received an order for landscaping work from Fiona Corporation at $50 per hour that would require 2,700 hours of equipment time. Variable landscaping costs for the Fiona Corporation order are $60 per hour and variable marketing costs are 4% of revenues. Forester can either accept the Fiona offer in whole or reject it. Should Forester accept the offer
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