Question
Pharoah provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation (straight-line) $1,500 per month Advertising $200 per month Insurance $3,100
Pharoah provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
Depreciation (straight-line) | $1,500 | per month | |
Advertising | $200 | per month | |
Insurance | $3,100 | per month | |
Weed and feed materials | $20 | per lawn | |
Direct labor | $16 | per lawn | |
Fuel | $4 | per lawn |
Pharoah charges $80 per treatment for the average single-family lawn. For the month ended July 31, 2025, the company had total sales of $10,400.
PHAROAH CVP Income Statement July 31, 2025For the Month Ended July 31, 2025For the Quarter Ended July 31, 2025 | ||||||||||||
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Total | Per Unit | Percent of Sales | ||||||||||
Contribution MarginVariable CostsGross ProfitSalesNet Income/(Loss)Cost of Goods SoldSelling ExpensesAdministrative ExpensesFixed Costs | $
| $
| % | |||||||||
Selling ExpensesSalesContribution MarginNet Income/(Loss)Cost of Goods SoldAdministrative ExpensesFixed CostsVariable CostsGross Profit |
|
|
| |||||||||
Variable CostsNet Income/(Loss)Cost of Goods SoldContribution MarginAdministrative ExpensesSelling ExpensesSalesGross ProfitFixed Costs |
| $
| % | |||||||||
Cost of Goods SoldNet Income/(Loss)Variable CostsSalesFixed CostsGross ProfitContribution MarginAdministrative ExpensesSelling Expenses |
| |||||||||||
Administrative ExpensesContribution MarginFixed CostsSalesNet Income/(Loss)Gross ProfitVariable CostsSelling ExpensesCost of Goods Sold | $
|
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