Problem 2 (7 points): We-Save-Um Animal Rescue's (WSU) executive director has asked you to prepare an annual budget for fiscal year 2025 as well as a flexible budget based on a 10% increase in the number of dogs taken into WSU's shelter during the year. She has given you the following guidelines. 600 Number of dogs rescued and placed by WSU - - Average length of stay for a dog 10 days Daily cost of feeding one dog - $0.90 Number of veterinary visits per dog 1.2 Cost per veterinary visit - $35 Cost of spay/neuter and transportation per dog rescued - $45 Cost of the kennel and related equipment - $300,000 Useful life of the kennel and related equipment - 20 years WSU uses straight-line depreciation Salvage value of the kennel and related equipment - $0 WSU has three full-time employees. An executive director, who earns $80,000 per year, an evaluator/trainer, who earns $45,000 per year, and a kennel manager, who earns $38,000. Fringe benefits are equal to 25% of each employee's annual salary. WSU expects to place all the dogs that it takes into the program by the last day of the fiscal year. It charges an adoption fee of $225 per dog. Experience has shown that 15% of the people elect to make an additional donation to WSU at the time of adoption. Historically, these extra donations have averaged $200. In addition, WSU has an active fund-raising program and expects to raise $100,000 in donations during the fiscal year.