FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Bonavita 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.
Variable
Fixed
Element
Element per
Customer
per Month
Served
Revenue
Employee salaries and wages
Travel expenses
Other expenses
$4,200
$1,200
$ 500
$41,300
$33,000
When the company prepared its planning budget at the beginning of July, it assumed that 33 customers would have been served.
The amount shown for net operating income in the planning budget for July would have been closest to:
Multiple Choice
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Transcribed Image Text:Bonavita 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. Variable Fixed Element Element per Customer per Month Served Revenue Employee salaries and wages Travel expenses Other expenses $4,200 $1,200 $ 500 $41,300 $33,000 When the company prepared its planning budget at the beginning of July, it assumed that 33 customers would have been served. The amount shown for net operating income in the planning budget for July would have been closest to: Multiple Choice
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