Income Statement

Chapter $2$ Homework Problems assignment take frame

$($ HHH $),$ a house$-$cleaning service. Each cleaning $($cleaning one house one time$)$ takes a team of three house cleaners about $1\mathrm{.}5$ hours. On average, HHH completes about

year. The following total costs are associated with the total cleanings:

Next year, HHH expects to purchase $$25,600$ of direct materials. Projected beginning and ending inventories for direct materials are as follows:

Direct Materials Inventory

and total administrative expense is projected at $$53,000.$

Required:

Prepare an income statement in good form.

Happy Home Helpers, Inc.

Income Statement

For the Coming Year

What if Jean and Tom increased the price to $$55$ per cleaning and no other information was affected? Which of the following statements would be true?