Mega Bright Window Cleaners' Monthly Income Statement at Several Levels

question 76

Essay

Mega Bright Window Cleaners' monthly income statement at several levels of activity is as follows:

a.Identify each expense as fixed,variable,or mixed.
b.Prepare a contribution margin income statement based on a volume of 5,000 windows.

---

Definitions:

Income Summary

An account in which the revenues and expenses are temporarily recorded to calculate the net income or loss for a period, before transferring to the capital account.

Capital

Refers to the financial assets or resources that individuals or businesses have available to invest or spend on building and growing their operations.

Expense Account(s)

Accounts used to record the costs incurred in the operation of a business, such as rent, utilities, and salaries, which are used to calculate net income.

Assets

Resources owned by a business that have economic value and can be used to meet debts or commitments.