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Bustillo Company operates sight-seeing buses. Management has identitled two cost drivers-the number of buses in operation and the number of passengers served that it uses
Bustillo Company operates sight-seeing buses. Management has identitled 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 formules appear below: Cost per Passenger Cost per Bus $ 476 $ 4 Vehicle operating costs Advertising Administrative costs Insurance Fixed Cost per Month $ 6,800 $ 2,500 $ 5,300 $ 3,900 s 3B $ 1.5 For example, vehicle operating costs should be $6,800 per month plus $476 per bus plus $4 per passenger. The company's sales revenue should average $28 per passenger. In July, the company operated 46 buses and served a total of 3,250 passengers. How much is the company's flexible budget operating income for July? Multiple Choice O $28,696 $30,981 $60,019 o $19,304
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