Question

Question 6, E6-21A (similar to) Question Help Parish Drycleaners has capacity to clean up to 6000gments per month Click the con lo view the cour schedule Assume that Parishcharges customers 513 per garment for dry cleaning Prepare Part's projected income statement i 4 300ments are cleaned in March First pe contribution mancome statement ment using the traditional format the prepare Paris's Begin by preparing the projected incre m enting the tradition a l Round your m es to the nearest whole dollar Emerlosses Projected income Statement Reference Total variable cols 3.000 4.500 .000 Garments Garments Garments 500 2250 $ 3000 10300 1000 10800 12.300 $ 100 000 Total peating costs Average coupe s Print Done

Answer 1

Projected income statement:

Dry cleaning revenue	$55,900
(Less): Operating costs ($10,800 + [4,300 X $0.50]	$12,950
Operating income (loss)	$42,950

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