Sanjana's Sweet Shoppe operates on the boardwalk of a New England coastal town. The store only opens for the summer season and the business is heavily dependent on the weather and the economy in addition to new competition. Sanjana Sweet, the owner, prepares a budget each you for reading long-term weather forecasts and mats of summer tourism The budget is a first step in planning whether she will need any loans and whether she needs to consider austments to store staffing Based on expertise and experience, she develops the following Cross Mergin per Price Cost of Goods) Scea Good Fair Number of Customers 41000 Sanjana assumes for simplicity that the gross margin and the estimated number of customers we independent. Thus, who has in possession in addition to the cost of the products sold Sarjana estrates stating costs to be $35.000 ps 2 for every customer in excess of 31.000. The marketing and w e costs are estimated to be $12.100 plus 3 percent of the gross margin Required: Prepare an analysis of the post operating income for anjana m io that in Echt 135. What is the range of operating income? Cests Adil Margin S 19 Customers 2 6.000 26.000 26.000 Varmit-B-Gone is a per control service that operates in a wburban neighborhood. The company empts to make service calls at least once a month to al homes that subscribe to its service calls during the summer. The number of subscribers also varies with the season. The number of subscribers and the average number of a to each subscriber for the months of interest follow makes more frequen August The average price charged for a service call is $80. Of the service calls, 30 percentare pad in the month the service is rendered, 0 percent in the month after the service is rendered, and 8 percent in the second month after. The remaining 2 percent is uncolectible should decrease by c ated 20 percent. The -B-Gone emates that the number of subsorbers in September should al 10 percent below August levels, and the number of service calipers following information is able for costs incurred in A l Al costs except depreciation are paid in cash Service Variable costs 9000 Depreciation Marketing and d Martin (variate) Administre ded) e co m the 5 Variable service and marketing costs change in vom F r o provided by contract, which is for a percent increase in Required: Prepare a bugeted income statement for September (Round intermediateca VARMITB-GONE For the Month of Septe 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 colis Maintenance and repair Depreciation foued) 10.000 17.009 $ 73.000 Marketing and administrative costs Marketing (variable) Administrative xed) To Total costs Variable service and marketing costs change with volume. Foed depreciation will remain the same, but fired administre provided by contract, which calls for a 1 percent increase in September costs will increase by percent beginning September 1. Maintenance and repair Required Prepare a budgeted income statement for September (Round Intermediate calculations to decimal places VARMIT GONE Budgetedincettent For the Month of September Service costs Toric coats Sanjana's Sweet Shoppe operates on the board of a New England Co l own. The store only opens for the summer season and the business is heavily dependent on the weather and the economy in addition new competition. Sana Sweet, the owner, prepares a budget each year her reading long term weather forecasts and s ales of sur tourism. The budget is a first step in paring whether she will need any loans and whether the needs to cons u mentow i ng on expertise and experience the develop the following: Scenario Price Cost of Goods Customers e t es Sarjana ametorok, that the gross margin and the membe rs windependent Th starting is to be for every customer excess of 31.000. The mating and direc t re were in on to the cost of the produc ed to be $12.100 percent of the gross man Required: Prepare an o p erating income for Sanjana sio tatin Ext 13.15 Whitenge of being income? berto Margus pertinen ting Opening