Oriole Horticulture provides and maintains live plants in office buildings. The companys 938 customers are charged $30 per month for this service, which includes weekly watering visits. The variable cost to service a customers location is $17 per month. The company incurs $2,490 each month to maintain its fleet of four service vans and $3,136 each month in salaries. Oriole pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions.

$ $ Total Variable Expenses Variable Expenses Operating Income Sales Revenue Fixed Expenses Vans Expense Bookkeeping Expense Contribution Margin Salaries Expense Service Expense Total Fixed Expenses $ $ 4 4 $