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Saved least once a month to all nomes that subscribe to its service. it makes more frequent calls auring the summer. ine number or

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Saved least once a month to all nomes that subscribe to its service. it makes more frequent calls auring the summer. ine number or 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: Service calls (per March April Subscribers 900 subscriber) 0.6 1,000 0.9 May 1,700 1.5 nts June 1,900 2.5 July 1,900 August 2,000 3.0 2.4 eBook 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 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 527,000 Maintenance and repair 25,000 Depreciation (fixed) 45,000 Total $97,000 Harketing and administrative costs $17,500 50,000 $97,500 Marketing (variable) Administrative (fixed) Total Total costs Variable service and marketing costs change 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) VARMIT.B.GONE Budgeted become Statement For the Month of September Sa

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