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 Variable overhead Fixed overhead 7 $470,000 15,000 19,000 Next year, HHH expects to purchase $26,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: Direct Materials Inventory Beginning Ending $4,000 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 $50 each next year. Total selling expense is projected at $23,000, 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 Less operating expenses: 88 2. What if Jean and Tom increased the price to $55 per cleaning and no other information was affected? Which of the following statements would be true? Sales would rise by $50,000 Operating income would be $217,000 Fixed costs per cleaning would decrease De