Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:

	Fixed Element per Month		Variable Element per Customer Served		Actual Total for May
Revenue			$	5,500	$	204,000
Employee salaries and wages	$	59,000	$	2,000	$	137,900
Travel expenses			$	510	$	17,500
Other expenses	$	38,000			$	36,200

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

4.	What amount of other expenses would be included in Adgers flexible budget for May?

Amount of the other expenses ______

5.

What net operating income would appear in Adgers flexible budget for May?

Net operating income ______

13.	What amount of other expenses would be included in Adgers planning budget for May? Amount of other expenses _________

Required: 1. What amount of revenue would be included in Adger's flexible budget for May? Revenue Variable element per customer s 40 Actual activity Amount in flexible budget