Question

Question 6, E6-21A (similar to) Parish Drycleaners has capacity to clean up to 6,000 garments per month (Click the icon to view the cost schedule.) Assume that Parish charges customers $13 per garment for dry cleaning Prepare Parish's projected income statement if 4,300 garments are cle in March. First, prepare the income statement using the traditional format, then prepare Parish's contribution margin income statement Parish Drycleaners Projected Income Statement Х Month Ended March 31 Reference Dry cleaning revenue $ 55.900 Less Operating costs 12,950 $ 3,000 42.950 Operating income (loss) 4,500 6,000 Garments Garments Garments Next complete the projected contribution margin income statement (Round your ans Total variable costs $ 1,500 $ 2,250 $ 3,000 Parish Drycleaners Total fixed costs 10,800 10.800 10.800 Projected Contribution Margin Income Statement Total operating costs $ 12,300 $ 13,050 $ 13, 800 Month Ended March 31 Incor 10) 0.50 Variable cost per garments Fixed cost per garment Average cost per garment 050 $ 3.60 0.50 $ 2.40 0/12) 4.10 5 290 $ 230 Print Done Choose from any list or enter any number in the input fields and then click Chec

Answer 1

Contribution margin income statement:

Dry cleaning revenue	$55,900
(Less): Variable cost (4,300 X $0.50)	$2,150
Contribution margin	$53,750
(Less): Fixed cost	$10,800
Operating income (loss)	$42,950