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CoursHeroTranscribedText: Ex 1339 0 Reference Saved Help 53' VarmitBGone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at least onoe 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 ofsubscribers and the average number of calls to each subscriber for the months of interest follow: Service calls (per Subscribers subscriber) March 1,250 0.6 April 1,350 0.9 May 2,050 1.5 June 2,250 2.5 July 2,250 3.0 August 1,500 2.4 The average price charged for a 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. VarmitBGone estimates that the number ofsubscribers in September should fall 10 percent below August levels, and the number ofservice 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 $ 1 7 , 00 0 Maintenance and repair 15 , 00 0 Depreciation (fixed) 351000 Total $ 6 7 , 00 0 Marketing and administrative costs Marketing (variable) $ 24,000 Administrative (fixed) 431000 Total $ 72,000 Total costs $139,000 Variable service and marketing costs change with volume. Fixed depreciation will remain the same, but xed 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.) Total service costs Marketing and administrative: Total marketing and administrative Total costs