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

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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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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