Refer to the original data in the preceding exercise. Poolside’s management estimates that the number Preparation of Budgeted of subscribers in September should fall 10 percent below August levels, and the number of service calls Financial Statements should decrease by an estimated 20 percent. The following information is available for costs incurred in (© 2, 3)

August. All costs except depreciation are paid in cash.

Service costs eXcel Variable costs .......... ROTH SEMNE 18 CITC TOR aah EF DS Pe $ 4,720 mhhe.comf/hilton4e MainiemanCeranGiiep alilsre asc ass seats cece se canca eee caer 4,200 Depreciation (fixed) ies. scence etareny cet MO eee ramen ce hey 2,200 ATG ite ieee eeepc eres yee cs Soe ke ee oN i Roa $11,120 Marketing and administrative costs:

Marketi Gu Walia le)metece eseatecet cBeera teastes $ 2,500 AGHUMIStratlVSlTIXGG) a erecce sees eaner- as. aneaee-tibedemetaesrres 2,300

“ROEKE asso ro he eet a REED oso soreeee ARE cts nen REE ne RE SE ge $ 4,800 HOLA COSTS treme cen Recto oak ee eee es evans: euloneeses sabe $15,920 Variable cash and marketing costs change with volume. Fixed depreciation will remain the same, but fixed administrative costs will increase by 5 percent beginning September 1. Maintenance and repair are provided by contract, which calls for a 1 percent increase in September.

Required

a. Prepare a budgeted income statement for September.

b. \SHEET. Build an Excel spreadsheet to solve requirement