Income Statement Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house- cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials Direct labor $472,500 Variable overhead 15,000 Fived overhead 18,000 Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: Direct Materials Inventory $4,000 Ending 2,600 There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of $45 each next year. Total selling expense is projected at $22,000, and total administrative expense is projected at $53,000. Required: 1. Prepare an income statement in good form. Happy Home Helpers, Inc. Income Statement For the coming Year Beginning Administrative expenses Cost of services sold Gross margin Sales Selling expenses Operating income 2. What if Jean and Tom increased the price to $50 per cleaning and no other information was affected? Which of the following statements would be true