Adger Corporation is a service company that measures its output based on the num

Question

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below Fixed Element Variable Element Actual per Customer Served 6,100 $ 1,500 $ 600 Total for May $ 223,500 $ 126,000 $ 20,400 $ 44,300 per Revenue Employee salaries and wages Travel expenses Other expenses Month $68,000 $47,000 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers Required: 1. What amount of revenue would be included in Adger's flexible budget for May? Amount of revenue included in the flexible budget

Explanation / Answer

It is said that the loan is given in April and the repayment is made in June. The interest on the loan is 920 for the period. Since you have already taken the interest payment as a separate line item, the "repayments" line will be equal to 30,000 only, and not 30,920.

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