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X TI11-2 (similar to -Question Help | The Columbia Company provides landscaping services to corporations and businesses. All its landscaping work requires Columbia to use
X TI11-2 (similar to -Question Help | The Columbia Company provides landscaping services to corporations and businesses. All its landscaping work requires Columbia to use landscaping equipment. Its landscaping equipment has the capacity to do 14,000 hours of landscaping work. It currently anticipates getting orders that would utilize 13,500 hours of equipment time from existing customers. Columbia charges $100perhour for landscaping work. Cost information for the current expected activity level is as follows EB (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 Columbia should accept or reject the special order. Without One-Time Only Special Order Relevant revenues Relevant variable costs Landscaping costs Marketing costs Total relevant costs Enter any number in the edit fields and then click Check Answer Clear All Check Answer remaining ping WorR Data Table Revenues ($100 x 13,500 hours) Variable landscaping costs (including materials and labor), which vary 1,350,000 th pecial order, 783,000 with the number of hours worked ($58 per hour x 13,500 hours) Fixed landscaping costs Variable marketing costs (7% of revenues) Fixed marketing costs Total costs Operating income 105,000 94,500 74,000 1,056,500 293,500 Print Done nswer Read the requirement. should accept or reject the special order. Without One-Time Only Special Order Relevant revenues Relevant variable costs: Landscaping costs Marketing costs Total relevant costs Relevant operating income
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