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Nancy's Nursery provides and maintains live plants in office buildings. The company's 120 ...

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Nancy's Nursery provides and maintains live plants in office buildings. The company's 120 ...

Nancy's Nursery provides and maintains live plants in office buildings. The company's 120 customers are charged $90 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $22 per month. The company incurs $2,000 each month to maintain its equipment and service vans and $3,000 each month in salaries. Nancy pays a CPA firm $5 per customer for accounting services.

Required:

a.	Prepare Nancy's contribution format income statement for the month.

b.	What is the expected monthly operating income if 10 customers are added?

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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