Business, 27.08.2019 05:00 qorderiusnewton

Jean and tom perritz own and manage happy home inc. (hhh), a house cleaning service. each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. on average, hhh completes about 15,000 cleanings per year. the following total costs are associated with the total cleanings:
next year, hhh expects to purchase $25,600 of direct materials. projected beginning and ending inventories for direct materials are as follows:
there is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. hhh expects to sell 15,000 cleanings at a price of $45 each next year. total selling expense is projected at $22,000, and total administrative expense is rojected at $53,000.
required:
1. prepare an income statement in good form.
2. what if jean and tom increased the price to $50 per cleaning and no other information was affected? explain which line items in the income statement would be affected and how.

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Jean and tom perritz own and manage happy home inc. (hhh), a house cleaning service. each cleaning...

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