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 is currently utilizing 9,000 hours of equipment time. Rainier charges$80 per hour for landscaping work. Cost information for the current activity level is as follows: Revenues ($80 x 9,000 hours) $720,000 Variable landscaping costs (including materials and labor), which vary 450,000 with the number of hours worked ($50 per hour x 9,000 hours) Fixed landscaping costs 108,000 Variable marketing costs (5% of revenues) 36,000 Fixed marketing costs 72,000 Total costs 666,000 Operating income $54,000

Required: Rainer has just received a one-time only special order for landscaping work from lasell corporation at $60 per hour that would require 1,000 hours of equipment time. should rainier accept the offer even though revenue per hour is less than Rainier's landscaping cost of $62 per hour [($450,000 + $108,000)/ 9,000 hours)]? No marketing costs will be necessary for the one time special order.

Begin by determining the change in operating income if Rainier 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 operatingincome.)

	$
Less:

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