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Pristine Solution is a service company that measures its output by the number of customers served. The company expects to collect $4,200 per customer
Pristine Solution is a service company that measures its output by the number of customers served. The company expects to collect $4,200 per customer served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes (see the table below).When the company prepared its planning budget at the beginning of July, it assumed that 33 customers would have been served. The amount shown for net operating income in the planning budget for July would have been closest to: Fixed cost per month Variable cost per customer served Employee salaries and wages $41,300 $1,200 Travel expenses $500 Other expenses $33,000
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