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During March, Pipestem Resort budgeted for 2 7 , 0 0 0 customers, but actually served 2 5 , 0 0 0 customers. The company
During March, Pipestem Resort budgeted for customers, but actually served customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $q
Wages and salaries: $ $q
Supplies: $q
Insurance: $
Miscellaneous expense: $ $q
The company wants to prepare a flexible budget for March based on the actual level of activity for the month.
Based on the information above, calculate total revenue for the month ended March
Based on the information above, calculate total expenses for the month ended March
Based on the information above, calculate net operating income for the month ended March
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