Refer to the Princeton Drycleaners in E6- 21A. Assume that Princeton charges customers $ 8 per garment for dry cleaning. Prepare Princeton€™s projected income statement if 4,300 garments are cleaned in March. First, prepare the income statement using the ­traditional format; then prepare Princeton€™s contribution margin income statement.
In E6-21A

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2,000 3,500 Garments Garments Garments 5,000 Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment $2,100 $200