Problem 1-43 (Algo) Cost Data for Managerial Purposes (LO 1- KC Services provides landscaping services in Edison. Kate Chen, the owner, is incurred and is considering dropping its lawn services, which she feels are marg doing so will result in lost revenues of $55,000 per year (including the lost tree both services). The present manager will continue to supervise the tree service: Kate estimates that the company will save 15 percent of the equipment leases, percent on rent and utilities. Required: a. Prepare a report of the differential costs and revenues if the lawn service is c After Dropping Service KC SERVICES Annual Income Statement Before Dropping Service Sales revenue $ 375,000 Costs Equipment leases 245,000 Labor 19,800 Utilities 21 000 Problem 1-43 (Algo) Cost Data for Managerial Purposes (LO 1- KC Services provides landscaping services in Edison. Kate Chen, the owner, is incurred and is considering dropping its lawn services, which she feels are marg doing so will result in lost revenues of $55,000 per year (including the lost tree both services). The present manager will continue to supervise the tree service: Kate estimates that the company will save 15 percent of the equipment leases, percent on rent and utilities. Required: a. Prepare a report of the differential costs and revenues if the lawn service is c After Dropping Service KC SERVICES Annual Income Statement Before Dropping Service Sales revenue $ 375,000 Costs Equipment leases 245,000 Labor 19,800 Utilities 21 000