Cornwall Mobile Detailing $($CMD$)$ is a service that washes and details a customer's vehicle at their home or office. It operates on a

membership bosis. Members poy $$900$ dues per month, which entitle them to a complete wosh ond detail service monthly. Members

may also order additional car woshes during the month at a fee of $$110.$ Additional washes are common in both summer and winter

months. The number of members also varies with the sesson. The number of members and the sveroge number of additional washes

by members for the months of interest follow:

Cornwoll ollows members to poy for dues on credit. Cornwall's experience is thst $40$ percent of its members poy cosh for the dues, $50$

percent of the members poy the dues for $0$ month in the next month, $5$ percent in the second month after. The remsinder is

uncollectible. Additional washes are payable in cash.

Cornwall estimates that the number of members in July should incresse $20$ percent above June levels, snd the number of additional

washes per member should incresse by an estimated $12\mathrm{.}5$ percent. The following information is available for costs incurred in June. All

costs except depreciation are paid in cash.

Service costs

Variable costs

Equipment maintenance

Depreciation $($fixed$)$

Total

Marketing and administrative costs

Marketing $($variable$)$

Adninistrative $($fixed$)$

Total

Tatal costs

Voriable service and marketing costs change with volume, messured by number of members. Fixed depreciation will remain the some,

but fixed administrative costs will incresse by $10$ percent beginning July $1.$ Equipment maintensence is outsourced and the contract calls

for a $5$ percent incresse beginning July $1.$

Required:

Prepare o budgeted income statement for July.

Note: Do not round Intermedlate calculations. Enter your answers rounded to the nearest whole dollars.