Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at least once 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 of subscribers and the average number of calls to each subscriber for the months of interest follow:

	Subscribers			Service calls (per subscriber)
March		1,000			0.6
April		1,100			0.9
May		1,800			1.5
June		2,000			2.5
July		2,000			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.

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	$	28,000
Maintenance and repair		26,000
Depreciation (fixed)		46,000
Total	$	100,000
Marketing and administrative costs
Marketing (variable)	$	18,500
Administrative (fixed)		59,000
Total	$	77,500
Total costs	$	177,500

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.)

Vam n one 5 pest oor no serv oe that opertes r 5uburban ne bo noo to each SUbecrber for the monts of merest folow The oo st east once m on h to all ho mes at 5ubson e to ns serv ce. It m a es more he nun bero su ec he nun ber o su sob ony attempts to make ser ce ca equent cale d n g the summer e73 so vanes with the season March May July 1.000 1.100 0.8 09 2.000 2.000 1.500 2.5 3.0 August The * wage p et charged fora se ce cal i, 5 0. Of the servo e cal. 30 percent are ped n the month th" se voe " re de ed, 80 percent in 1 " month afte the serv er , er dered and peroent in the second month after The re na ing 2 percent is unco eetbl. Varmil-B-Gone estimates that the number of subscribers in September should fall 10 percent below August levels, and the fumber of service cals per subscber should decrease by an estimated 20 percent The fellowing infomation is avaiable for costs incumed in August All costs eccept depreciation are paid in cash 28,000 Maincenance and sepair Total Marketing (variable) 18.500 177,500 Total cost Variable service and marketing costs changewith volume Fued dap eciation will remain the same, bat fxad administrative cosis will increase by 5 parcent begisning Sepoambar 1. Maistananees and repair ave prowided by contraet, which cals fer a 1 parcant ineease in Saptember Required Prapara a budgated income statamant for Sr Round intarmadiane ealeulations to 2 dacimals placs Budgeted Income Statement Marketing and adminstrative Tatsl costs AR