(b) What is the expected monthly operating income if 184 customers are added? Operating income...
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(b) What is the expected monthly operating income if 184 customers are added? Operating income $ (c). Mr. Oriole is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $10,356 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $18,416 per year to handle the invoicing and simple accounting. He would need to pay $6,300 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 888, 1,637, and 1,698. 888 1,637 1,698 $ $ $ Current cost $ $ $ Option 1 $ $ $ Option 2 Oriole Horticulture provides and maintains live plants in office buildings. The company's 888 customers are charged $36 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $19 per month. The company incurs $2,354 each month to maintain its fleet of four service vans and $3,130 each month in salaries. Oriole pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions. Per Unit $ $
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