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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 14,500 hours of landscaping work. It currently anticipates getting orders that would utilize 13,300 hours of equipment time from existing customers. Gannett charges $115 per hour for landscaping work. Cost information for the current expected activity level is as follows: (Click the icon to view the cost information.) Read the requirement. Begin by completing an analysis, and start by showing the computation of the company's operating income without the special order. Next, calculate operating income with the special order, and then determine whether Gannett should accept or reject the special order. Without i Data Table One-Time Only Special Order Relevant revenues Revenues ($115 x 13,300 hours) $ 1,529,500 Variable landscaping costs (including materials and labor), which vary Relevant variable costs: with the number of hours worked ($75 per hour x 13,300 hours) 997,500 Landscaping costs Fixed landscaping costs 95,000 Marketing costs Variable marketing costs (4% of revenues) 61,180 Total relevant costs 65,000 Fixed marketing costs Relevant operating income 1,218,680 Total costs $ 310,820 Operating income Print Done Requirement Gannett has received an order for landscaping work from Ashley Corporation at $66 per hour that would require 2,900 hours of equipment time. Variable landscaping costs for the Ashley Corporation order are $75 per hour and variable marketing costs are 4% of revenues. Gannett can either accept the Ashley offer in whole or reject it. Should Gannett accept the offer? Print Done Enter any number in the edit fields and then click hen Anwar

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