ABC Bus Lines runs a series of bus routes. A new route is being planned for next year. The Sales Manager says the range of passengers would be:- 20,000 (Conservative Estimate)- 40,000 (Optimistic Estimate)- $26.00 (Ticket Price)The controller provides the following information:- $6.00 (Fuel)- $6.00 (Driver)- $2.00 (Selling)- $1.00 (Admin)- $15.00 (Total)Additional costs:- $100,000 (Facility Overhead, regardless of number of trips)- $50,000 (Selling & Administration, regardless of number of trips)**Instructions:**Assume the first-year results were:- 22,450 Passengers- $538,800 Revenue- $123,475 Fuel- [[Remaining data not visible in the provided image]] **Instructions**Assume the first-year results were:- 22,450 — Passengers- $538,800 — Revenue- $123,475 — Fuel- $95,415 — Driver- $41,500 — Selling Variable- $17,250 — Administration Variable- $125,000 — Facility Costs- $80,000 — Overhead**Tasks:**A. Prepare flexible budgets based on 20,000, 30,000, and 40,000 passengers.B. Determine the break-even point for each budget.C. Prepare a flexible budget report including variances based on the actual results of 22,450 passengers.D. Discuss the results of the year and decide what action should be taken in the future as a result.

Name: ABC Bus Lines runs a series of bus routes. A new route is being plann
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Description: ABC Bus Lines runs a series of bus routes. A new route is being planned for next year. The Sales Manager says the range of passengers would be:- 20,000 (Conservative Estimate)- 40,000 (Optimistic Estimate)- $26.00 (Ticket Price)The controller provid

A flexible budget is prepared to match the level of actual income and expenses. It is prepared by…

Business

Accounting

Assume the first-year results were: • 22,450-Passengers . $538,800-Revenue . . • $123,475-Fuel • $95,415-Driver • $41,500-Selling Variable • $17,250-Administration Variable . $125,000-Facility Costs $80,000-Overhead A. Prepare flexible budgets based on 20,000, 30,000, and 40,000 passengers. B. Determine the break-even point for each budget. C. Prepare a flexible budget report including variances based on the actual results of 22,450 passengers. D. Discuss the results of the year and decide what action should be taken in the future as a result.

Assume the first-year results were: • 22,450-Passengers . $538,800-Revenue . . • $123,475-Fuel • $95,415-Driver • $41,500-Selling Variable • $17,250-Administration Variable . $125,000-Facility Costs $80,000-Overhead A. Prepare flexible budgets based on 20,000, 30,000, and 40,000 passengers. B. Determine the break-even point for each budget. C. Prepare a flexible budget report including variances based on the actual results of 22,450 passengers. D. Discuss the results of the year and decide what action should be taken in the future as a result.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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