Question: Prepare Pharoah's contribution format income statement for the month. Service Expense Vans Expense Operating Income Total Fixed Expenses Variable Expenses Sales Revenue Salaries Expense Fixed




Prepare Pharoah's contribution format income statement for the month. Service Expense Vans Expense Operating Income Total Fixed Expenses Variable Expenses Sales Revenue Salaries Expense Fixed Expenses Total Variable Expenses Bookkeeping Expense Contribution Margin {} {b {b 4} 4} m (b) What is the expected monthly operating income if 182 customers are added? Operating income $ eTextbook and Media Save for Later Attempts: 0 of 3 used (C) Mr. Pharoah is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a at fee of $10,374 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $19,008 per year to handle the invoicing and simple accounting. He would need to pay $5,972 per year to have taxes and year-end nancial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 926, 1,470, and 1,522. Compare the current bookkeeping cost with the two options at customer levels of 926, 1,470, and 1,522. 926 1,470 1,522 Current cost $ $ $ Option 1 $ $ 35 Option 2 $ $ $ eTextbook and Media Save for Later Attempts: O of 3 used Pharoah Horticulture provides and maintains live plants in ofce buildings. The company's 926 customers are charged $36 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $19 per month. The company incurs $2,474 each month to maintain its eet of four service vans and $3,032 each month in salaries Pharoah pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions. (3) Prepare Pharoah's contribution format income statement for the month. : $ $ {b 4 m {b {b 4 H; {b {b
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