Prepare Budgeted Financial Statements: Refer to the data in exercise 17-28.

Green Lawn estimates the number of subscribers in September should fall 10 percent below August levels, and the number of service calls should decrease by an estimated 5 percent. The following information is available for costs incurred in August. All costs except depreciation are paid in cash.

Variable cash costs and variable marketing costs will change with volume. Fixed depreciation will remain the same, while fixed administrative costs will increase by 5 percent beginning September 1. Maintenance and repair is provided by contract, which calls for an 18 percent increase over the next year (1.5 percent per month).

Required: Prepare a budgeted income statement for September.

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Manufacturing costs: Variable costs $2,360 Maintenance and repair 2,100 Depreciation (fixed) 1,100 Total 5,560 Marketing and administrative costs: Marketing (variable) 1,250 Administrative (fixed) 1,150 Total 2,400 Total costs $7,960