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Bustillo Company operates sightseeing buses. Management has identified two cost drivers--the number of buses in operation and the number of passengers served that it uses
Bustillo Company operates sightseeing buses. Management has identified two cost drivers--the number of buses in operation and the number of passengers served that it uses in its budgeting and performance reports. Data concerning the company's cost formulas appear below. Cost per Bus $ 476 Cost per Passenger $ 3 Vehicle operating costs Advertising Administrative costs Insurance Fred Cost per Month $ 6,800 $ 2,500 $ 5.300 5 3,900 $ 38 $ 15 For example, vehicle operating costs should be 56.800 per month plus $476 per bus plus $3 per passenger The company's sales operated 50 buses and served a total of 3.150 passengers. How much is the company's flexible budget operating income for July? should average 533 per passenger in July, the company Multiple Choice $63,900 $30.600 $58,375
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