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Need help with last part for C. Sales Revenue $ 36,024 Variable Expenses Service Expense $ 16,116 Bookkeeping Expense 1,896 Total Variable Expenses 18,012 Contribution
Need help with last part for C.
Sales Revenue $ 36,024 Variable Expenses Service Expense $ 16,116 Bookkeeping Expense 1,896 Total Variable Expenses 18,012 Contribution Margin 2.226 Vans Expense Me Total Fixed Expenses 5,682 Continuinrome 12:30 Per Unit evenue $ 36,024 $ 38 e Expenses e Expense 16,116 i 17 ceeping Expense 1.896 MA 2 ariable Expenses 18,012 19 w ution Margin 18,012 $ 19 xpenses es Expense 3,456 Expense 2226 Sed Expenses 5682 (b) Your answer is correct. What is the expected monthly operating income if 248 customers are added? Operating income $ 17,042 (c) Mr. Pharoah is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $10,275 per year plus $1 per customer per month Option 2: Hire a part-time bookkeeper for $18.460 per year to handle the invoicing and simple accounting. He would need to pay $6,700 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 948, 1,377 and 1,460. 948 1,377 1,460 Current cost 22,752 $ 33.048 S Option 1 21,651 $ 26.799 $ Option 2 25.160 $ 25.160 S Step by Step Solution
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