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 companys cost formulas appear below:

For example, vehicle operating costs should be $6,800 per month plus $476 per bus plus $3 per passenger. The companys sales revenue should average $33 per passenger. In July, the company operated 47 buses and served a total of 3,150 passengers. How much is the companys flexible budget operating income for July?

Multiple Choice

a- 47117

b- 29172

c- 56833

d- 65328

Cost per Bus $ 476 Cost per Passenger $ 3 Vehicle operating costs Advertising Administrative costs Insurance Fixed Cost per Month $ 6,800 $ 2,500 $ 5,300 $ 3,900 $ 38 $ 1.5