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Bonavita Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable
Bonavita Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes Revenue Employee salaries and wages Travel expenses Other expenses Variable Fixed Element per Element Customer per Month Served $4,200 $41,300 $1,200 $ 500 $33,000 When the company prepared its planning budget at the beginning of July. It assumed that 33 customers would have been served The amount shown for net operating income in the planning budget for July would have been closest to Multiple Choice $8,200 ($1,414) O ($1,200) ($4,300) 2
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