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Perreth Dry Cleaners has capacity to clean up to 8,000 garments per month. View the cost schedule. Assume that Perreth charges customers $7 per garment for dry cleaning. Prepare Perreth's projected income statement if 4,400 garments are cleaned in March. First, prepare the income statement using the traditional format; then, prepare Perreth's contribution margin income statement. Begin by preparing the projected income statement using the traditional format. (Use a minus sign or parentheses to indicate a deduction or loss.) Perreth Dry Cleaners Projected Income Statement Cost schedule re help. Month Ended March 31 5,000 Garments 6,500 Garments 8,000 Garments Total variable costs $ 3,250 $ 4,225 $ 5,200 Total fixed costs 15,600 15,600 15,600 $ 18,850 $ 19,825 $ 20,800 Total operating costs Variable cost per garment $ 0.65 $ 0.65 $ 0.65 Fixed cost per garment 3.12 2.40 1.95 $ 3.77 $ 3.05 $ 2.60 Average cost per garment Print Done - X Clear all Check answer

Perreth Dry Cleaners has capacity to clean up to 8,000 garments per month. View the cost schedule. Assume that Perreth charges customers $7 per garment for dry cleaning. Prepare Perreth's projected income statement if 4,400 garments are cleaned in March. First, prepare the income statement using the traditional format; then, prepare Perreth's contribution margin income statement. Begin by preparing the projected income statement using the traditional format. (Use a minus sign or parentheses to indicate a deduction or loss.) Perreth Dry Cleaners Projected Income Statement Cost schedule re help. Month Ended March 31 5,000 Garments 6,500 Garments 8,000 Garments Total variable costs $ 3,250 $ 4,225 $ 5,200 Total fixed costs 15,600 15,600 15,600 $ 18,850 $ 19,825 $ 20,800 Total operating costs Variable cost per garment $ 0.65 $ 0.65 $ 0.65 Fixed cost per garment 3.12 2.40 1.95 $ 3.77 $ 3.05 $ 2.60 Average cost per garment Print Done - X Clear all Check answer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Perreth Dry Cleaners has capacity to clean up to 8,000 garments per month. View the cost schedule. Assume that Perreth charges customers $7 per garment for dry cleaning. Prepare Perreth's projected income statement if 4,400 garments are cleaned in March. First, prepare the income statement using the traditional format; then, prepare Perreth's contribution margin income statement. Begin by preparing the projected income statement using the traditional format. (Use a minus sign or parentheses to indicate a deduction or loss.) Perreth Dry Cleaners Projected Income Statement Cost schedule re help. Month Ended March 31 5,000 Garments 6,500 Garments 8,000 Garments Total variable costs $ 3,250 $ 4,225 $ 5,200 Total fixed costs 15,600 15,600 15,600 $ 18,850 $ 19,825 $ 20,800 Total operating costs Variable cost per garment $ 0.65 $ 0.65 $ 0.65 Fixed cost per garment 3.12 2.40 1.95 $ 3.77 $ 3.05 $ 2.60 Average cost per garment Print Done - X Clear all Check answer
Transcribed Image Text:Perreth Dry Cleaners has capacity to clean up to 8,000 garments per month. View the cost schedule. Assume that Perreth charges customers $7 per garment for dry cleaning. Prepare Perreth's projected income statement if 4,400 garments are cleaned in March. First, prepare the income statement using the traditional format; then, prepare Perreth's contribution margin income statement. Begin by preparing the projected income statement using the traditional format. (Use a minus sign or parentheses to indicate a deduction or loss.) Perreth Dry Cleaners Projected Income Statement Cost schedule re help. Month Ended March 31 5,000 Garments 6,500 Garments 8,000 Garments Total variable costs $ 3,250 $ 4,225 $ 5,200 Total fixed costs 15,600 15,600 15,600 $ 18,850 $ 19,825 $ 20,800 Total operating costs Variable cost per garment $ 0.65 $ 0.65 $ 0.65 Fixed cost per garment 3.12 2.40 1.95 $ 3.77 $ 3.05 $ 2.60 Average cost per garment Print Done - X Clear all Check answer
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