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Bustillo Company operates sight-seeing buses. Management has identified two cost driversthe number of buses in operation and the number of passengers served that it uses
Bustillo Company operates sight-seeing buses. Management has identified two cost driversthe 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 Passenger Cost per Bus $ 476 3 Vehicle operating costs Advertising Administrative costs Fixed Cost per Month $ 6,800 $ 2,500 $ 5,300 $ 3,900 $ 38 1.5 Insurance For example, vehicle operating costs should be $6,800 per month plus $476 per bus plus $3 per passenger. The company's sales revenue should average $30 per passenger. In July, the company operated 49 buses and served a total of 3,150 passengers. How much is the company's flexible budget operating income for July
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