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During June, Tarras Corporation plans to serve 50,000 customers. They actually served 45,236 customers. The company uses the following revenue and cost formulas in
During June, Tarras Corporation plans to serve 50,000 customers. They actually served 45,236 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.51q Wages and salaries: $35,000 +$1.71q Supplies: $0.91q Insurance: $19,000 Miscellaneous expense: $6,000+ $0.61q Required: Prepare the company's planning budget for June. Tarras Corporation Planning Budget For the Month Ended June 30 Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income 50,000
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