Special-Order Decision, Services, Qualitative AspectsJason Rogers works full-time for UPS and runs a lawn-mowing service part-time after work during the warm months of April through October. Jason has two men working with him, each of whom is paid $6.00 per lawn mowing. Jason has 25 residential customers who contract with him for once-weekly lawn mowing during the months of May through September, and twice-per-month mowings during April and October. On average, Jason charges $42 per lawn mowed. Recently, LStar Property Management Services asked Jason to mow the lawn at each of its 29 rental houses every two weeks during the months of May through September. LStar has offered to pay $29 per lawn mowing, and would forego the lawn edging that normally takes Jason’s team about half of its regular mowing time. If Jason accepts the job, he can assign a one-man team to mow the rental house yards, and will have to buy an additional power lawn mower for about $370 used. Fuel to run the additional mower will be about $0.50 per yard.1. If Jason accepts the special order, by how much will his income increase or decrease? by $fill in the blank 2 Special-Order Decision, Services, Qualitative AspectsJason Rogers works full-time for UPS and runs a lawn-mowing service part-time after workduring the warm months of April through October. Jason has two men working with him,each of whom is paid $6.00 per lawn mowing. Jason has 25 residential customers whocontract with him for once-weekly lawn mowing during the months of May throughSeptember, and twice-per-month mowings during April and October. On average, Jasoncharges $42 per lawn mowed. Recently, LStar Property Management Services asked Jasonto mow the lawn at each of its 29 rental houses every two weeks during the months ofMay through September. LStar has offered to pay $29 per lawn mowing, and would foregothe lawn edging that normally takes Jason's team about half of its regular mowing time. IfJason accepts the job, he can assign a one-man team to mow the rental house yards, andwill have to buy an additional power lawn mower for about $370 used. Fuel to run theadditional mower will be about $0.50 per yard.1. If Jason accepts the special order, by how much will his income increase or decrease?Increaseby $ 4,415 X

Total number of lawns=No. of rental houses×No. of weeks per month×No. of months

Answered: Special-Order Decision, Services,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Special-Order Decision, Services, Qualitative Aspects

Jason Rogers works full-time for UPS and runs a lawn-mowing service part-time after work during the warm months of April through October. Jason has two men working with him, each of whom is paid $6.00 per lawn mowing. Jason has 25 residential customers who contract with him for once-weekly lawn mowing during the months of May through September, and twice-per-month mowings during April and October. On average, Jason charges $42 per lawn mowed. Recently, LStar Property Management Services asked Jason to mow the lawn at each of its 29 rental houses every two weeks during the months of May through September. LStar has offered to pay $29 per lawn mowing, and would forego the lawn edging that normally takes Jason’s team about half of its regular mowing time. If Jason accepts the job, he can assign a one-man team to mow the rental house yards, and will have to buy an additional power lawn mower for about $370 used. Fuel to run the additional mower will be about $0.50 per yard.

1. If Jason accepts the special order, by how much will his income increase or decrease?

by $fill in the blank 2

Special-Order Decision, Services, Qualitative Aspects
Jason Rogers works full-time for UPS and runs a lawn-mowing service part-time after work
during the warm months of April through October. Jason has two men working with him,
each of whom is paid $6.00 per lawn mowing. Jason has 25 residential customers who
contract with him for once-weekly lawn mowing during the months of May through
September, and twice-per-month mowings during April and October. On average, Jason
charges $42 per lawn mowed. Recently, LStar Property Management Services asked Jason
to mow the lawn at each of its 29 rental houses every two weeks during the months of
May through September. LStar has offered to pay $29 per lawn mowing, and would forego
the lawn edging that normally takes Jason's team about half of its regular mowing time. If
Jason accepts the job, he can assign a one-man team to mow the rental house yards, and
will have to buy an additional power lawn mower for about $370 used. Fuel to run the
additional mower will be about $0.50 per yard.
1. If Jason accepts the special order, by how much will his income increase or decrease?
Increase
by $ 4,415 X

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