Blossom Horticulture provides and maintains live plants in office buildings. The companys 946 customers are charged $ 37 per month for this service, which includes weekly watering visits The variable cost to service a customers locatio9 per month. The company incurs $ 2,378 each month to maintain its fleet of four service vans and $ 3,122 each month in salaries. Blossom pays a bookkeeping service $ 2 per customer each month to handle all invoicing and accounting functions.

Prepare Blossom's contribution format income statement for the month. Per Unit $ $ $ $ $ (b) What is the expected monthly operating income if 152 customers are added? Operating income $ (c) Mr. Blossom is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $ 10,281 per year plus $ 1 per customer per month. Option 2: Hire a part-time bookkeeper for $ 18,394 per year to handle the invoicing and simple accounting. He would need to pay $5,000 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 946, 1,859, and 1,934. 946 1,859 1,934 Current cost $ $ $ $ Option 1 $ $ $ Option 2 $ $ $ $