Bustilo Company operates sightseeing buses. Management has identified two cost drivers-the number of buses in operation and the number of passengers served that uses in its budgeting and performance reports. Data concerning the company's cost formulas appear below: Cost per Bus $ 476 Cost per Passenger $ 4.5 Vehicle operating costs Advertising Administrative costs Insurance Fixed Cost per Month $ 6,800 $ 2.500 $ 5.300 $ 3.900 $ 38 $ 1.5 For example, vehicle operating costs should be $6.800 per month plus $476 per bus plus 54.5 per passenger. The company's sales revenue should average $33 per passenger. In July, the company operated 52 buses and served a total of 3.250 passengers. How much is the company's flexible budget operating income for July? Multiple Choice $61,073 564 720 $42522 O $31,552 A cash budget for the first three quarters of Brister Incorporated is given below 1000 omitted. The company requires a minimum cash balance of at least $5.000 to start each quarter i necesy, the company wil borrow money from its bank to maintain this balance. The company will pay no terest in Quarters 12 and 3. It will repay as much of its bonowings as possible as soon as it has more than $5.000 in cash in a given quarter. Suppose the company starts the first quarter with no bank debt. How much total bank dat does the company expect to have at the end of the the quarter? Cash Budget Quarter 1000 omined 1 2 3 $6 88 127 87 2 56 65 65 40 45 50 7 10 11 Cash balance, beginning Add collections from customers Total cash table Less disbursements: Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess deficiency of cash available over disbursements Financing Borrowings Repayments Total financing Cash balance, ending 2 2 2 Multiple Choice 55.000 Stefanovich company manufactures three products-A, B, and C. The selling price. variable costs, and contribution margin for one unit of each product follow Product B $180 $ 280 C $240 Selling price Variable expenses Direct materials Other variable expenses Total variable expenses Contribution margin 24 80 102 100 126 180 $ 54 $ 100 32 148 180 $ 60 Contribution margin ratio 30% 35.71% 25 % The same raw material is used in all three products. The company has only 6.600 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier's plant Management is trying to decide which products) to concentrate on next week in filing its backlog of orders. The material costs $8 per pound. A foreign supplier could furnish the company with additional stocks of the raw material at a substantial premium over the usual price. Assuming the company's estimated customer demand is 500 units per product line and that the company has used its 6.600 pounds of raw material in an optimal fashion what is the highest price the company should be willing to pay for an additional pound of materials? Multiple Choice O $10 O S1B $23