Sunland Horticulture provides and maintains live plants in office buildings. The company's $950$ customers are charged $$40$ per month for this service, which includes weekly watering

visits. The variable cost to service a customer's location is $$19$ per month. The company incurs $$2,254$ each month to maintain its fleet of four service vans and $$3,300$ each month in

salaries. Sunland pays a bookkeeping service $$2$ per customer each month to handle all invoicing and accounting functions.

$($a$)$

Prepare Sunland's contribution format income statement for the month.

$($b$)$

$($c$)$

Mr$.$ Sunland 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 $$10,389$ per year plus $$1$ per customer per month.

Option $2$: Hire a part$-$time bookkeeper for $$19,596$ per year to handle the invoicing and simple accounting. He would need to pay $$6,600$ per year to have taxes and year$-$end

financial statements prepared.

Compare the current bookkeeping cost with the two options at customer levels of $950,1,510,$ and $1,586.$