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

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The Gannett Company provides landscaping services to corporations and businesses. All its landscaping work requires Gannett to use landscaping equipment. Its landscaping equipment has the capacity to do 12,000 hours of landscaping work. It is currently utilizing 11,600 hours of equipment time. Gannett charges 570 per hour for landscaping work Cost information for the current activity level is as follows: Click the icon to view the cost information Read the requirement Begin by determining the change in operating income of Gannett accepts the special 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.) Loss Increase (decrease in operating Income by accepting the one-time special order Requirement - X the chang parenthese X empt Gannett has just received a one-time only special order for landscaping work from Noran Corporation at $58 per hour that would require 500 hours of equipment time. Should Gannett accept the offer even though revenue per hour is less than Gannett's landscaping cost of $60 per hour [($598,000 + $92,000) / 11,500 hours)] No marketing costs will be necessary for the one-time only special order. in operat Print Done - - X Data table $ 805,000 Revenues ($70 x 11,500 hours) Variable landscaping costs (including materials and labor), which vary with the number of hours worked ($52 per hour x 11,500 hours) Fixed landscaping costs Variable marketing costs (3% of revenues) Fixed marketing costs 598,000 92,000 24,150 66,000 Total costs 780,150 Operating income $ 24,850 Print Done

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