Cost Behavior Prepare income statement in two formats Farnsworth Drycleaners has capacity to clean up to 7,500 garments per month. The following operating data is available for Farnsworth. Amount charged per garment for dry cleaning $10.00 Variable cost per garment $0.70 Fixed costs per month $14,400. Requirements: 1- Using the traditional format, prepare Farnsworth’s projected income statement for July assuming 4,260 garments are cleaned during the month. a. Check your spelling carefully and do not abbreviate. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted.
2- Using the contribution margin format, prepare Farnsworth’s projected income statement for July assuming 4,260 garments are cleaned during the month. a. Check your spelling carefully and do not abbreviate. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted.