• Rent of the land will be 2800 per month. The rent of the building with all the facilities installed is estimated in 24,000 per year, with council tax charges estimated at 15,000 per year. The rent of the six horses all together will be 3,000 per month. All the rents are payable in the first week of each quarter, beginning in January.

• Utilities for the building (water, gas, and electricity) are expected to be 8,000 per quarter. They will be paid by direct debit the first week of the next quarter

• Maintenance costs are estimated at 34,000 per year. They will be paid quarterly, in the first week of each quarter starting from April

• Full-time instructor salary for Paul and Helena will be 12,000 per year each and social security costs will add 12% to the salary cost. Apart from the two graduates, they plan to hire three other instructors that will work full-time and deliver the lessons. Their salary will be 10,000 per year each, plus 12% social security costs. All labour costs will be paid in the third week of each month.

• Paul and Helena will buy a computer for the reception. The expected cost is 2,000 that will be paid in two instalments of equal amount in February and March. The computer will have 4 years useful life and will be depreciated accordingly (straight line method).

• The cost of the food and vet services for the horses is estimated to be 25% of revenues each month. One month credit has been agreed with these suppliers. No inventory of food has been planned for.

• Cleaning costs are estimated to be 10% of revenues each month. They will be paid the fourth week of each month.

• To bring the business to the attention of the public, Paul and Helena have agreed to spend a total of 7,000 for the year on advertising to print and distribute leaflets and to appear in local magazines and radio shows. They plan to make one payment in January to cover the first six months' worth of promotion, and then to pay 1,000 per quarter thereafter.

• At the end of the first year of business Paul and Helena plan to use the profit obtained in the first year to expand the centre by buying three new horses. They estimate the additional cost of this investment to be 9,000 per year.

Revenues are as follows:

	January	February	March	April	May	June
Option 1	936.00	864.00	936.00	864.00	900.00	900.00
Option 2	1,521.00	1,404.00	1,521.00	1,404.00	1,462.50	1,462.50
Option 3	2,574.00	2,376.00	2,574.00	2,376.00	2,475.00	2,475.00

	July	August	September	October	November	December
Option 1	972.00	864.00	936.00	972.00	900.00	900.00
Option 2	1,579.50	1,404.00	1,521.00	1,579.50	1,462.50	1,462.50
Option 3	2,673.00	2,376.00	2,574.00	2,673.00	2,475.00	2,475.00

How do i make a budgeted income statement using the contribution margin format for the year ending 31st December 2025 (round the numbers to two decimals, if necessary).?

Eg of budgeted income statement using the contribution margin format: