$352 F 21. Witten Corporation is a service company that measures its output by t

Question

$352 F 21. Witten Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per Variable Element per Customer Served Month S 6,600 S 1,000 S 600 Employee salaries and wages. …·…· Other expenses. A total of 27 customers were actually served during January $ 55,100 $ 43,100 The revenue in the company's flexible budget for January would have been closest tor. a. $178,200 b. $180,900 c. $147,400 d. $145,200

Explanation / Answer

Answer:- The revenue in the company’s flexible budget for January would have been closest to:- $178200 (option a).

Explanation:- Revenue = $6600 per actually customer served

Number of customer actually served during January =27 customers

Hence Revenue = $6600*27 customers

                         =$178200

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