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Sanjana assumes, for simplicity, that the gross margin and the estimated number of customers are independent. Thus, she has nine possible scenarios. In addition to

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Sanjana assumes, for simplicity, that the gross margin and the estimated number of customers are independent. Thus, she has nine possible scenarios. In addition to the cost of the products sold, Sanjana estimates staffing costs to be $26.000 plus $2 for every customer in excess of 21,000. The marketing and administrative costs are estimated to be $10,100 plus 3 percent of the gross margin. Required: Prepare an analysis of the possible operating Income for Sanjana similar to that in Exbibit 13.15. What is the range of operating Incomes? Es Operating Costs Marketing & Admin Operating Profit (Loss) 24 Poor Fair Good Poor Gross Number of Margin Customers Gross Margin $ 16.000 $ 41 16.000 5 16.000 $ 21 21000 $ 41 21.000 21,000 $ 21 31.000 $ 4.1 31.000 $ 51 31.000 51 Fair Good Poor Fan Good Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at least once a month to all homes that subscribe to its service. It makes more frequent calls during the summer. The number of subscribers also varies with the season. The number of subscribers and the average number of calls to each subscriber for the months of interest follow Service calls (per Subscribers Subscriber) March 600 Apel 700 May 1,300 June 1,400 July 1,350 August 1,350 0.6 0.9 1.4 2.3 2.2 2.6 The average price charged for a service call is $60. Of the service callis, 30 percent are paid in the month the service is rendered 60 percent in the month after the service is rendered, and 8 percent in the second month after the remaining 2 percent is uncollectible Required: What are Varmit-B-Gone's expected cash receipts for May June July, and August? Cash Receipts May June July August

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