The Gannett Company provides landscaping services to corporations and businesses. All its landscaping work requires Gannett to use landscaping equipment. Its landscaping equipment has the capacity to do hours of landscaping work. It is currently utilizing hours of equipment time. Gannett charges $ per hour for landscaping work. Cost information for the current activity level is as follows:
Begin by determining the change in operating income if Gannett accepts the special order. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero. Use parentheses or a minus sign to enter a decrease in operating income.
Le
Increase decrease in operating income by accepting the onetime special order
Should Gannett accept the special order from Flora Corporation?
Will operating income increase or decrease?
By how much?
Data table
Revenues $ hours
Variable landscaping costs largely labor which vary with the number of hours worked $ per hour hours
Fixed landscaping costs
Variable marketing costs of revenues
Fixed marketing costs
Total costs
Operating income
$
table
