Mighty Bright Window Cleaners monthly income statement at several levels of activity is as follows: Required a.

Mighty Bright Window Cleaners’ monthly income statement at several levels of activity is as follows:

Required
a. Identify each expense as fixed, variable, or mixed.
b. Prepare a contribution margin income statement based on a volume of 3,000windows.

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Windows washed Sales revenue Cost of goods sold Gross profit Operating expenses 2,000 $3,000 1,200 1,800 4,000 $6,000 2,400 3,600 6,000 $9,000 3,600 5,400 Advertising expense Salaries and wages expense Insurance expense Postage expense 400 700 200 400 400 900 200 800 2,300 $1,300 400 1,100 200 1,200 2,900 $2,500 Total operating expenses Operating income 1,700 $ 100