TI 11-1 (similar to) Question Help The Mitchell Company provides landscaping services to corporations and businesses. All its landscaping work requires Mitchell to use landscaping equipment. Its landscaping equipment has the capacity to do 12,500 hours of landscaping work. It is currently utilizing 10,500 hours of equipment time. Mitchell charges $110 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 if Mitchell 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.) Revenues S 100,000 150,000 Less: Variable landscaping costs Data Table Increase (decrease) in operating income by accepting the one-time special order (50,000) $ 1,155,000 Should Mitchell accept the special order from Castle Corporation? Will operating income increase or decrease? By how much? 787,500 Revenues ($110 x 10,500 hours) Variable landscaping costs (including materials and labor), which vary with the number of hours worked ($75 per hour x 10,500 hours) Fixed landscaping costs Variable marketing costs (6% of revenues) Fixed marketing costs 105,000 69,300 74,000 1,035,800 Total costs $ 119,200 Operating income Print Done Choose from any list or enter any number in the input fields and then click Check Answer. All parts showing Clear All Check Answer TI 11-1 (similar to) Question Help The Mitchell Company provides landscaping services to corporations and businesses. All its landscaping work requires Mitchell to use landscaping equipment. Its landscaping equipment has the capacity to do 12,500 hours of landscaping work. It is currently utilizing 10,500 hours of equipment time. Mitchell charges $110 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 if Mitchell 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.) Revenues S 100,000 150,000 Less: Variable landscaping costs Data Table Increase (decrease) in operating income by accepting the one-time special order (50,000) $ 1,155,000 Should Mitchell accept the special order from Castle Corporation? Will operating income increase or decrease? By how much? 787,500 Revenues ($110 x 10,500 hours) Variable landscaping costs (including materials and labor), which vary with the number of hours worked ($75 per hour x 10,500 hours) Fixed landscaping costs Variable marketing costs (6% of revenues) Fixed marketing costs 105,000 69,300 74,000 1,035,800 Total costs $ 119,200 Operating income Print Done Choose from any list or enter any number in the input fields and then click Check Answer. All parts showing Clear All Check
