Required:
a. Prepare Hercules’ budgeted income statements for August and September.
b. Tom and Lynda are considering running an advertising campaign in August that will cost $10,000. If Tom and Lynda run the ads, they expect 10 more individual members to join and 5 additional family memberships (i.e., individual memberships for August and September are expected to be 710 and 700, respectively) Prepare Hercules’ budgeted income statements for August and September if Tom and Lynda run the advertising campaign.
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