Blossom Horticulture provides and maintains live plants in office buildings. The company's 896 customers are charged $35 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 $2,030 each month to maintain its fleet of four service vans and $3,088 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 $ $ 4: $ $ $ Service Expense Fixed Expenses Variable Expenses Vans Expense Bookkeeping Expense Contribution Margin Salaries Expense Total Fixed Expenses Sales Revenue Operating Income Total Variable Expenses (b) What is the expected monthly operating income if 214 customers are added? Operating income eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (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 $10,389 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $19,322 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 896, 1,665, and 1,688. 896 1,665 1,688 Current cost $ ta $ $ ta Option 1 $ $ $ Option 2 $ $ $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit