Need help with the following question, The Gannett Company provides landscaping services to corporations and businesses. All its landscaping work requires Gannettto use landscaping equipment. Its landscaping equipment has the capacity to do 14,000 hours of landscaping work. It is currentlyutilizing 13,200 hours of equipment time. Gannett charges $115 per hour for landscaping work. Cost information for the currentactivity 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 inthe 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 inoperating income.)Less:Increase (decrease) in operating income by accepting the one-time special orderShould Gannett accept the special order from Flora Corporation?Will operating income increase or decrease?By how much?Data tableRevenues ($115 x 13,200 hours)Variable landscaping costs (largely labor), which vary with the numberof hours worked ($60 per hour x 13,200 hours)Fixed landscaping costsVariable marketing costs (5% of revenues)Fixed marketing costsTotal costsOperating incomeRequirementPrintDone$ 1,518,000792,000110,00075,90074,0001,051,900$466,100Gannett has just received a one-time only special order for landscaping work fromFlora Corporation at $65 per hour that would require 800 hours of equipment time.No marketing costs will be necessary for the one-time only special order. ShouldGannett accept the offer even though revenue per hour is less than Gannett'slandscaping cost of $68.33 per hour [($792,000+ $110,000) + 13,200 hours)].×Next

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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 14,000 hours of landscaping work. It is currently utilizing 13,200 hours of equipment time. Gannett charges $115 per hour for landscaping work. Cost information for the current activity level is as follows: