Celebrity Services is an enetertainment service company specializing in small ga

Question

Celebrity Services is an enetertainment service company specializing in small gatherings. Each client pays a fixed monthly service fee based on the number of guests attending planned parties. Records are kept on the time and expenses used for each gathering. The following information is available for these seven customers: Customer/Revenues/Costs Elvis Presley/300/225 Luciano Pavrotti/200/305 James Hendrix/1,256/1,400 Marc Bolin/1,000/785 Jim Morrison/80/75 Kurt Cobain/75/110 Cass Elliot/350/220 Compute the operating income for each of the seven customers

Explanation / Answer

operating income=revenues-costs for each customer;therefore operating income for elvis = 300-225=75 operating income for luciano=200-305= -105 operating income for james=1256-1400= -144 operating income for marc=1000-785=215 operating income for jim=80-75=5 operating income for kurt=75-110= -35 operating income for cass=350-220=130

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