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Varmit-BGGone is a pest control service that operates in a sububan neighbothood. The company atterngts to inake service cals at least once a month to

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Varmit-BGGone is a pest control service that operates in a sububan neighbothood. The company atterngts to inake service cals at least once a month to all homes, that subscnbe to its service, it makes mare frequent calls during the summer. The number of subscibers also varies with the season. The number of subscribers and the average number of calls to each subscriber for the months of liserest follow: The average pociou charged for a semice call is $80.0 ot the service calls, 30 petcent are pald in the morith the service as rendered, 60 percent in the month after fre service it pendered and 8 percent in the second month after The remaining 2 percent is uncollectible. VarmitB. Gone ebthates that the number of bubseribess in Segtember shoula fal io percent below August levels. and the number of service cill per pubsenter shosid of crease by an estimated 20 percent. The following informatice is ovakable for costs incurred in Acqust Al cost exoept depiectation are paid in cash Variable service and markenng costs change with volurfe. Fixd depreciation will remain the saine, but fixed adrimistrative costs wal inciease by 5 percent heginaing Septemher 1 Maimtenance ard repair ale povided by contract. Which cals for a 1 percent ncrease in Sieptember deprecsation War remain the same, but fixed administrative costs will Septerrber: Required: Prepare a budgeted incotre statement for September (Round intermediate calculations to 2 decimals places.)

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