Easy Clean operates a chain of dry cleaners. It is experimenting with the use of a continuous-improvement (i.e., kaizen) budget for operating expenses. Currently, a typical location has operating expenses of $13,000 per month. Plans are in place to achieve labor and utility savings. The associated operational changes are estimated to reduce monthly operating expenses by a factor of 0.99 beginning in January.

Required:

What are the estimated operating expenses for January? For June? For December? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

January June December

Estimated operating cost