I am stuck on the computation of the materials to be purchased in ounces on number 2 and then on the fixed administrative costs and maintenance and repair costs in number 4.

4 Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at least once a month to all homes that subscribe to its service. It makes more frequent calls during the summer. The number of subscribers also varies with the season. The number of subscribers and the average number of calls to each subscriber for the months of interest follow: 2 points March April May June July August Subscribers 1,250 1,350 2,050 2,250 2,250 1,500 Service calls (per subscriber) 0.6 0.9 1.5 2.5 3.0 2.4 The average price charged for service call is $80. Of the service calls, 30 percent are paid in the month the service is rendered, 60 percent in the month after the service is rendered, and 8 percent in the second month after. The remaining 2 percent is uncollectible. Varmit-B-Gone estimates that the number of subscribers in September should fall 10 percent below August levels, and the number of service calls per subscriber should decrease by an estimated 20 percent. The following information is available for costs incurred in August. All costs except depreciation are paid in cash. Service costs Variable costs Maintenance and repair Depreciation (fixed) Total Marketing and administrative costs Marketing (variable) Administrative (fixed) Total $ 17,000 15,000 35,000 $ 67,000 $ 24,000 48,000 $ 72,000 $ 139,000 Total costs Variable service and marketing costs cha 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: Prepare a budgeted income statement for September. (Round intermediate calculations to 2 decimals places.) Required: Prepare a budgeted income statement for September. (Round intermed Answer is complete but not entirely correct. $ 207,360 VARMIT-B-GONE Budgeted Income Statement For the Month of September Sales revenue Service costs: Variable costs Maintenance and repair Depreciation (fixed) $ 12,240 10,800 X 35,000 $ 58,040 Total service costs Marketing and administrative: Marketing (variable) Administrative (fixed) $ 17,280 48,000 X $ Total marketing and administrative costs Total costs Operating profit $ 65,280 123,320 84,040 $ 2 The Casings Plant of Wyoming Machines makes plastics shells for the company's calculators. (Each calculator requires one shell.) For each of the next two years, Wyoming expects to sell 670,000 calculators. The beginning finished goods inventory of shells at the Casings Plant is 90,000 units. However, the target ending finished goods inventory for each year is 25,000 units. 2 points Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 260,000 ounces of plastic are in inventory. Management has set a target to have plastic on hand equal to three months' sales requirements. Sales and production take place evenly throughout the year. Required: a. Compute the total targeted production of the finished product for the coming year. b. Compute the required amount of plastic to be purchased for the coming year. (Do not round intermediate calculations.) X Answer is complete but not entirely correct. a. 605,000 Total targeted production in units Materials to be purchased in ounces b. 15,430 X