Nancy's Nursery provides and maintains live plants in office buildings.The company's 120 customers are charged $90 per month for this service,which includes weekly watering visits.The variable cost to service a customer's location is $22 per month.The company incurs $2,000 each month to maintain its equipment and service vans and $3,000 each month in salaries.Nancy pays a CPA firm $5 per customer for accounting services.
a.Prepare Nancy's contribution format income statement for the month.
b.What is the expected monthly operating income if 10 customers are added?

Question

Nancy's Nursery provides and maintains live plants in office buildings.The company's 120 customers are charged $90 per month for this service,which includes weekly watering visits.The variable cost to service a customer's location is $22 per month.The company incurs $2,000 each month to maintain its equipment and service vans and $3,000 each month in  salaries.Nancy pays a CPA firm $5 per customer for accounting services.
a.Prepare Nancy's contribution format income statement for the month.
b.What is the expected monthly operating income if 10 customers are added?

Quizplus · Accepted Answer

The Answer of Nancy's Nursery provides and maintains live plants in office buildings.The company's 120 customers are charged $90 per month for this service,which includes weekly watering visits.The variable cost to service a customer's location is $22 per month.The company incurs $2,000 each month to maintain its equipment and service vans and $3,000 each month in  salaries.Nancy pays a CPA firm $5 per customer for accounting services.
a.Prepare Nancy's contribution format income statement for the month.
b.What is the expected monthly operating income if 10 customers are added?

Nancy's Nursery Provides and Maintains Live Plants in Office Buildings