Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls answer b for thumbs up Sunland Horticulture provides and maintains live plants in office buildings. The company's 930 customers are charged $46 per month

image text in transcribed
image text in transcribed
image text in transcribed
pls answer b for thumbs up
Sunland Horticulture provides and maintains live plants in office buildings. The company's 930 customers are charged $46 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $26 per month. The company incurs $2.800 each month to maintain its fleet of four service vans and $3,800 each month in salaries. Sunland pays a bookkeeping service $5 per customer each month to handle all invoicing and accounting functions. Per Unit Sales Revenue 42780 46 Variable Expenses Service Expense 24180 i 26 Bookkeeping Expense 4650 i 5 Total Variable Expenses -28830 -31 Contribution Margin 13950 $ $15 Fixed Expenses Vans Expense 2800 3800 i Salaries Expense -6600 i Total Fixed Expenses 7350 Operating Income (b) What is the expected monthly operating income if 230 customers are added? $ ta Operating income

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

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

16th Edition

78110939, 978-0078110931

More Books

Students also viewed these Accounting questions