Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pring 2020 Saved Bustillo Company operates sight-seeing buses. Management has identified two cost drivers - the number of buses in operation and the number of

image text in transcribed

pring 2020 Saved Bustillo Company operates sight-seeing buses. Management has identified two cost drivers - the number of buses in operation and the number of passengers served that uses in its budgeting and performance reports. Data concerning the company's cost formulas appear below. Help Save & E Submit Cost per Bus $ 476 Vehicle operating costs Advertising Administrative costs Insurance Fixed Cost per Month $ 6.800 $ 2,500 $ 5,300 $ 3.900 Cost per Passenger $ 35 $ 38 $ 1.5 For example, vehicle operating costs should be $6.800 per month plus $476 per bus plus $3.5 per passenger. The company's sales revenue should average $35 per passenget in July, the company operated 55 buses and served a total of 3.250 passengers. How much is the company's flexible budget operating income for July? Multiple Choice $50,730 $69,395 $32,980 $63,020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Water Audits And Loss Control Programs

Authors: American Water Works Association

4th Edition

1625761007, 978-1625761002

More Books

Students also viewed these Accounting questions

Question

2. How should this be dealt with by the organisation?

Answered: 1 week ago

Question

explain what is meant by the term fair dismissal

Answered: 1 week ago