Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved 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.

image text in transcribed 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 $400 per month for weekly cleaning services and the commercial clients pay $1,800 per month for daily service (weekdays only). A typical residential client requires 12 hours a month for cleaning and a typical commercial client requires 65 hours a month. In September, LCS had 75 commercial clients and 80 residential clients. Cleaners are paid $16 per hour and are only paid for the hours actually worked. Supplies and other variable costs are estimated to cost $6 per hour of cleaning. Other monthly costs (all fixed) are $25,000 selling. general, and administrative, including managerial and dispatcher salaries, and $4,800 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 10 percent increase in residential clients and a 20 percent decrease in commercial clients. For November, Lambie Custodial Services has budgeted profit of $1,620 based on 50 commercial clients. Requlred: o. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internal Auditing Handbook

Authors: K. H. Spencer Pickett

2nd Edition

0470848634, 978-0470848630

More Books

Students also viewed these Accounting questions

Question

Swisher systems case study

Answered: 1 week ago

Question

Explain separators used for MSF desalination.

Answered: 1 week ago

Question

1. Identify three approaches to culture.

Answered: 1 week ago

Question

3. Identify and describe nine cultural value orientations.

Answered: 1 week ago

Question

4. Describe how cultural values influence communication.

Answered: 1 week ago