Essay
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.
Required:
a.Prepare Nancy's contribution format income statement for the month.
b.What is the expected monthly operating income if 10 customers are added?
Correct Answer:
Verified
Correct Answer:
Verified
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