a corporation bases is budgets on the activity measure \" customers served.\" du

Question

a corporation bases is budgets on the activity measure " customers served." during april the company plans to serve 38,000 customers. the company has provided the following data concerning the formulas it uses in its budgeting: Fixed element per month                        variable element per month

                   revenue                                    --                                                                 $2.10

                  Wages/Salaries                $25,000                                                                $0.50

                 Supplies                                   0                                                                     $0.30

                  Insurance                           $6,200                                                                 $0.00

                  Misc. Expense                   $2,500                                                                 $0.40

prepare the companys planning budget for april and what is the net income                       

Explanation / Answer

Answer:

Particulars Amount ($) Revenue 79800 Less: variable Expenses Wages and salaries 19000 Supplies 11400 Misc. expense 15200 Contribution 34200 Less: Fixed expenses Wages and salaries 25000 Supplies 0 Insurance 6200 Misc. expense 2500 Net income 500

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.