Explore BrainMass

Explore BrainMass

    MagicTouch: Create an income statement for last year in the contribution margin format

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A. Create an income statement for last year in the contribution margin format.
    B. If Mark wishes to earn the same profit as last year what will he have to charge per visit?
    C. Mark desires to maintain his current per visit price. How many visits will his company have to make to earn the same profit as last year?
    thanks

    ---
    Please see attached file for full problem description.

    © BrainMass Inc. brainmass.com June 3, 2020, 6:08 pm ad1c9bdddf
    https://brainmass.com/business/income-statement/income-statement-last-year-contribution-margin-format-48904

    Attachments

    Solution Preview

    See the attached file. Thanks.

    Contribution margin and profit analysis. Mark Fox operates the Magic Touch cleaning service specializing in commercial office buildings. Last year, his company made 25,000 office visits at $60 per visit. His variable costs were $30 per visit and fixed costs totaled $450,000. Mark is working on next year's budget and estimates his variable costs will increase $2 per unit and fixed costs will rise by $50,000.

    -A.Create an income statement for last year in the ...

    Solution Summary

    The expert creates income statements for last year in the contribution margin format.

    $2.19

    ADVERTISEMENT