Henley Horticulture provides and maintains live plants in office buildings. The company?s 948 customers are charged $38 per month for this service, which includes weekly watering visits. The variable cost to service a customer?s location is $17 per month. The company incurs $2,226 each month to maintain its fleet of four service vans and $3,456 each month in salaries. Henley pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions.

(a) Prepare Henley?s contribution format income statement for the month.

Per Unit
Salaries ExpenseOperating IncomeVans ExpenseTotal Fixed ExpensesService ExpenseSales RevenueBookkeeping ExpenseTotal Variable ExpensesContribution MarginVariable ExpensesFixed Expenses	$	$
Fixed ExpensesVans ExpenseBookkeeping ExpenseService ExpenseSalaries ExpenseOperating IncomeVariable ExpensesSales RevenueTotal Fixed ExpensesTotal Variable ExpensesContribution Margin:
Salaries ExpenseOperating IncomeSales RevenueVans ExpenseTotal Fixed ExpensesContribution MarginFixed ExpensesVariable ExpensesTotal Variable ExpensesService ExpenseBookkeeping Expense
Total Variable ExpensesFixed ExpensesSalaries ExpenseVans ExpenseSales RevenueService ExpenseOperating IncomeTotal Fixed ExpensesContribution MarginBookkeeping ExpenseVariable Expenses
Sales RevenueFixed ExpensesVans ExpenseVariable ExpensesSalaries ExpenseTotal Variable ExpensesService ExpenseTotal Fixed ExpensesContribution MarginOperating IncomeBookkeeping Expense
Total Fixed ExpensesService ExpenseBookkeeping ExpenseVariable ExpensesFixed ExpensesVans ExpenseContribution MarginSales RevenueTotal Variable ExpensesSalaries ExpenseOperating Income		$
Sales RevenueService ExpenseOperating IncomeSalaries ExpenseTotal Variable ExpensesVariable ExpensesTotal Fixed ExpensesContribution MarginVans ExpenseBookkeeping ExpenseFixed Expenses
Variable ExpensesSales RevenueTotal Variable ExpensesVans ExpenseContribution MarginFixed ExpensesSalaries ExpenseService ExpenseTotal Fixed ExpensesOperating IncomeBookkeeping Expense
Vans ExpenseSales RevenueTotal Variable ExpensesService ExpenseOperating IncomeTotal Fixed ExpensesVariable ExpensesContribution MarginBookkeeping ExpenseSalaries ExpenseFixed Expenses
Sales RevenueFixed ExpensesTotal Fixed ExpensesService ExpenseVans ExpenseContribution MarginTotal Variable ExpensesSalaries ExpenseOperating IncomeBookkeeping ExpenseVariable Expenses
Salaries ExpenseBookkeeping ExpenseVariable ExpensesContribution MarginOperating IncomeFixed ExpensesService ExpenseSales RevenueVans ExpenseTotal Variable ExpensesTotal Fixed Expenses	$