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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
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
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