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Pinion Memorial Diner is a not-for-profit charitable organization supported by donations. Prior to the beginning of August, the diner developed a planning budget for August
Pinion Memorial Diner is a not-for-profit charitable organization supported by donations. Prior to the beginning of August, the diner developed a planning budget for August based upon its estimate of serving 2,700 meals to homeless people. The diner's director uses the following criteria when developing budgets: per meal Fixed element Variable per element month Groceries $0 $3.10 Kitchen operations $4,700 $1.55 Administrative expenses ...... $3,400 $0.40 Fundraising expenses....... $1,800 $0.00 In early September, the diner's accountant provided the following summary of actual activity and expenses for August. Pinion Memorial Diner Statement of Expenses For the Month Ended August 31 Actual meals. 2,200 Groceries $ 6,530 Kitchen operations 8,470 Administrative expenses ...... 4,320 Fundraising expenses 1.770 Total expense $21,090 What amount will the diner include for kitchen operations in its August flexible budget? O $8,885 O $8,470 O $8,110 O $360
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