Question

Crane Horticulture provides and maintains live plants in office buildings. The company's 858 customers are charged $33 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 $2,058 each month to maintain its fleet of four service vans and $3,146 each month in salaries. Crane pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions.

Answer 1

Crane's Income statement
	$	working notes
company charged from customers	28314.00	($33 X 858)
Less : Variable cost
Service customer's location	16302.00	($19X858)
Book keeping service	1716.00	($2*858)
contribution	10296.00
Less : Fixed cost
Maintain of service vans	2058.00
Salaries	3146.00
Profit	5092.00