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

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The Rainier Company provides landscaping services to corporations and businesses. All its landscaping work requires Rainier to use landscaping equipment. Its landscaping equipment has the capacity to do 10,000 hours of landscaping work. It currently anticipates getting orders that would utilize 9,500 hours of equipment time from existing customers. Rainier charges $95 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 Rainier should accept or reject the special order. Relevant revenues Relevant variable costs: Landscaping costs Marketing costs Total relevant costs Relevant operating income Without One-Time Only Special Order Enter any number in the edit fields and then click Data Table Requirement Rainier has received an order for landscaping work from Donna Corporation at $60 per hour that would require 2,800 hours of equipment time. Variable landscaping costs for the Donna Corporation order are $70 per hour and variable marketing costs are 4% of revenues. Rainier can either accept the Donna offer in whole or reject it. Should Rainier accept the offer? Fixed landscaping costs Revenues ($95 x 9,500 hours) S 902,500 Variable landscaping costs (largely labor), which vary with the number of hours worked ($70 per hour x 9,500 hours) 665,000 95,000 36,100 75,000 871,100 Variable marketing costs (4% of revenues) Fixed marketing costs Total costs Operating income Print Done S 31,400 Print Done ?

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