Benjamin Corp. a shipping container refurbishment company that measures its outp

Question

Benjamin Corp. a shipping container refurbishment company that measures its output by the number of containers refurbished. The Co. has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Variable Element Fixed Element per Container Refurbished per Month Revenue Employee salaries and wages Refurbishing materials Other expenses S 5,400 S 1,000 $ 700 S 58.300 S 31,200 When the Co. prepared its planning budget at the beginning of March, t assumed that 26 containers would have been refurbished. However, 23 containers actually refurbished during March 10) The amount shown for revenue in the planning budget for March would have been closest to: B) $126,000 A) $142,435 C) S124,200 D) $140,400 11) The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to: A) $84,300 B) S81,300 C) $89,757 D) $79,400 12) The amount shown for "Refurbishing materials" in the planning budget for March would have been closest to: A) $16.100 B) S18,878 C) S18,200 D) S16.700 13) The amount shown for "Other expenses" in the planning budget for March would have been closest to: A) $34,591 B) $30,900 C) S30,600 D) S31,200 14) The amount shown for total expenses in the planning budget for March would have been closest to: A) S126,700 B) $128,600 C) S143,226 D) S133,700 15) The amount shown for net operating income in the planning budget for March would have been closest to: A) (S791) B) ($4,400) C) ($700) D) S6,700

Explanation / Answer

10)Revenue=5400*no of container refurbished
=5400*26=140400
It is option D
11)=58300+(1000*26)=84300
It is option A
12)=700*26=18200
It is option C
13)other expenses-31200
It is option D
14) total expenses=84300+18200+31200=133700
It is option D
15)Operating income=Revenue-expenses
=140400-133700=6700
It is option D

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