## Answers

1 | Monthly operating budget | |||

2-day program | 3,080 | |||

3-day program | 3,230 | |||

4-day program | 2,586 | |||

5-day program | 6,420 | |||

Director salary | 1,350 | |||

Total salary expense | 16,666 | |||

Payroll tax expense [16,666/(1-0.0765)]*7.65% | 1,381 | |||

lease expense | 5,000 | |||

Fixed operating expense | 930 | |||

variable operating expense | 1,260 | |||

Total monthly operating expenses | 25,237 | |||

2 | Budgeted Income Statement for 9 months school year | |||

Particulars | Amount | |||

Revenue | 239,100 | |||

Less: | ||||

Operating Expenses (25,237*9) | (227,133) | |||

Income | 11,967 | |||

3 | Although Pretty place preschool is a non profit organization, budgeted income statement helps the organization to track its progress and also helps in prioritizing the critical activities to achieve their mission |

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