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

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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

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

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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 ...

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