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Exercise 13-41 Budgeting in a Service Organization (LO 13.7) Jolly Cleaners offers residential and commercial cleaning services Clients pay a fed monthly fee for the service, but can cancel the service at the end of any month. In addition to the employees who do the actual cleaning, the fim includes two managers who handle the administrative task human resources, accounting, and so on and one dispatcher, who assign the clearing employees to jobs on a daily basis On average, residential clients pay $310 per month for cleaning weices and the commercial clients pay $1.500 per month. A typical residential client requires 15 hours a month for cleaning and a typical commercia client requires 55 hours a month in March, Jolly Cleaners bad 50 commercial clients and 100 residenti dients Cleaners are paid $10 per hour and are only paid for the hours actually worked Supplies and other variable costs are estimated to cost $6 per hour of cleaning. Other monthly cost (all foxed) are 331.000 SGKA, including managers and dispatcher stres, and $2,100 in other expenses Jolly Cleaners has earned positive reviews on social media in the area and the managers expect to grow. For April, they forecast a 5 percent increase in residential clients and a 10 percent increase in commer Required: Prepare a budgeted income statement for Jolly Cleaners for April Required: Prepare a budgeted income statement for Jolly Cleaners for April. JOLLY CLEANERS Budgeted Income Statement For the month of April Revenues: Commercial Residential Total revenue Expenses: Cleaner compensation Supplies SG&A Other expenses Total expenses Income

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