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can you solve this ? cost accounting Cornwall Mobile Detaling (CMD) is a service that woshes and detalls a customer's vehicle at their home or
can you solve this ? cost accounting
Cornwall Mobile Detaling (CMD) is a service that woshes and detalls a customer's vehicle at their home or office. It operates on a membership basis. Members poy 51,300 dues per month, which entitle them to a complete wosh and detail service monthly. Members may also order additional cor washes during the month ot a fee of $130. Additional washes are common in both summer and winter by members for the months of interest follow. Cornwall allows members to pay for dues on credit. Cornwail's experience is that 40 percent of its members pay cash for the dues. 50 percent of the members pay the dues for a month in the next month, 5 percent in the second month offec. The remainder is Corrwall estimates that the number of members in July should increase 20 percent above June levels, and the number of additional woshes per member should increase by on estimated 12.5 percent. The following information is avaliable for costs incurred in June. All Cornwall estimates that the number of members in July should increase 20 percent above June levels, and the number of additional Washes per member should increase by an estimoted 12.5 percent. The following information is ovallable for costs incurred in June. All costs except depreciation ore paid in cash. Variable service and marketing costs change with volume, measured by number of members. Fixed depreciation will remain the same, but fixed administrotive costs will increase by 10 percent beginning July 1 . Equipment maintenance is outsourced and the contract calls for a 5 percent increase beginning July 1 . Required: Prepore a budgeted income stotement for July. Note: Do not round intermediate calculotions. Enter your answers rounded to the nearest whole dollars. Cornwall Mobile Detailing Budgeted Income Statement For the Month of July Sales revenue Service costs Step by Step Solution
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