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Subject Company's Travel Department had the following budgeted costs for the coming year: Variable costs $34 per trip Fixed costs $143,360 Yearly Trips Monthly Peak
Subject Company's Travel Department had the following budgeted costs for the coming year: Variable costs $34 per trip Fixed costs $143,360 Yearly Trips Monthly Peak Trips West Sales Territory 110 trips 5 Midwest Sales Territory 170 trips 12 Southern Sales Territory 150 trips 15 Eastern Sales Territory 130 trips 8 The actual usage is as follows: West Sales Territory 100 trips Midwest Sales Territory 150 trips Southern Sales Territory 160 trips Eastern Sales Territory 140 trips Using both a fixed and variable rate, what are the respective rates for fixed and variable per trip for the West Sales Territory? Fixed costs are allocated on the basis of monthly peak trips
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