Lambie Custodial Services $($LCS$)$ offers residential and commercial janitorial services. Clients are billed monthly but can cancel the service at the end of any month. In addition to the employees who do the actual cleaning, the firm employs two managers who handle the administrative tasks $($human resources, accounting, and so on$)$ and one dispatcher, who assigns the cleaning employees to jobs on a daily basis. Required:

a$.$ How many residential clients are budgeted for November?

b$.$ Prepare a budgeted income statement for November to confirm your answer.

Complete this question by entering your answers in the tabs below.

Prepare a budgeted income statement for November to confirm your answer.

On average, residential clients pay $$550$ per month for weekly cleaning services and the commercial clients pay $$2,400$ per month for daily service $($weekdays only$).$ A typical residential client requires $15$ hours a month for cleaning and a typical commercial client requires $68$ hours a month. In September, LCS had $78$ commercial clients and $83$ residential clients. Cleaners are paid $$19$ per hour and are only paid for the hours actually worked. Supplies and other variable costs are estimated to cost $$9$ per hour of cleaning.

Other monthly costs $($all fixed$)$ are $$28,000$ selling, general, and administrative, including managerial and dispatcher salaries, and $$5,100$ in other expenses.

With the changing economic conditions, the customer mix at LCS is expected to change to one with more residential and fewer commercial clients. Already, for October, company managers forecast a $5$ percent increase in residential clients and a $15$ percent decrease in commercial clients.

For November, Lambie Custodial Services has budgeted profit of $$4,440$ based on $50$ commercial clients.

Required:

How many residential clients are budgeted for November?

Prepare a budgeted income statement for November to confirm your answer.Lambie Custodial Services $($LCS$)$ offers residential and commercial janitorial services. Clients are billed monthly

but can cancel the service at the end of any month. In addition to the employees who do the actual cleaning,

the firm employs two managers who handle the administrative tasks $($human resources, accounting, and so on$)$

and one dispatcher, who assigns the cleaning employees to jobs on a daily basis.

On average, residential clients pay $$550$ per month for weekly cleaning services and the commercial clients

pay $$2,400$ per month for daily service $($weekdays only$).$ A typical residential client requires $15$ hours a month

for cleaning and a typical commercial client requires $68$ hours a month. In September, LCS had $78$ commercial

clients and $83$ residential clients. Cleaners are paid $$19$ per hour and are only paid for the hours actually

worked. Supplies and other variable costs are estimated to cost $$9$ per hour of cleaning.

Other monthly costs $($all fixed$)$ are $$28,000$ selling, general, and administrative, including managerial and

dispatcher salaries, and $$5,100$ in other expenses.

With the changing economic conditions, the customer mix at LCS is expected to change to one with more

residential and fewer commercial clients. Already, for October, company managers forecast a $5$ percent

increase in residential clients and a $15$ percent decrease in commercial clients.

For November, Lambie Custodial Services has budgeted profit of $$4,440$ based on $50$ commercial clients.

Required:

a$.$ How many residential clients are budgeted for November?

b$.$ Prepare a budgeted income statement for November to confirm your answer.

Complete this question by entering your answers in the tabs below.

How many residential clients are budgeted for November?