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Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below: Flight
Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below:
Flight Caf | |
---|---|
Planning Budget | |
For the Month Ended July 31 | |
Budgeted meals (q) | 24,000 |
Revenue ($4.40q) | $ 105,600 |
Expenses: | |
Raw materials ($2.20q) | 52,800 |
Wages and salaries ($6,100 + $0.20q) | 10,900 |
Utilities ($2,000 + $0.05q) | 3,200 |
Facility rent ($3,100) | 3,100 |
Insurance ($2,400) | 2,400 |
Miscellaneous ($700 + $0.10q) | 3,100 |
Total expense | 75,500 |
Net operating income | $ 30,100 |
In July, 25,000 meals were actually served. The companys flexible budget for this level of activity appears below:
Flight Caf | |
---|---|
Flexible Budget | |
For the Month Ended July 31 | |
Budgeted meals (q) | 25,000 |
Revenue ($4.40q) | $ 110,000 |
Expenses: | |
Raw materials ($2.20q) | 55,000 |
Wages and salaries ($6,100+ $0.20q) | 11,100 |
Utilities ($2,000 + $0.05q) | 3,250 |
Facility rent ($3,100) | 3,100 |
Insurance ($2,400) | 2,400 |
Miscellaneous ($700 + $0.10q) | 3,200 |
Total expense | 78,050 |
Net operating income | $ 31,950 |
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