Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below:
Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) 28,000 Revenue ($3.90q) Expenses: Raw materials ($2.00g) Wages and salaries ($6,100 + $0.20g) Utilities ($2,200 + $0.05g) Facility rent ($3,600) Insurance ($2,900) Miscellaneous ($400 + $0.10g) Total expense Net operating income $ 109,200 56,000 11,700 3,600 3,600 2,900 3,200 81,000 $ 28,200 In July, 29,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($3.90g) Expenses: Raw materials ($2.00g) Wages and salaries ($6,100+ $0.20g) Utilities ($2,200 + $0.05g) Facility rent ($3,600) Insurance ($2,900) Miscellaneous ($400 + $0.10g) Total expense Net operating income 29,000 $ 113,100 58,000 11,900 3,650 3,600 2,900 3,300 83,350 $ 29,750
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started