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? |