During June, Aaron Boone Corporation plans to serve 43,000 customers. The company uses the following revenue and cost formulas In Its budgetlng, where q Is the number of customers served: Revenue: $4.37g Wages and salarles: $34,300 + $1.64g Supplies: $0.84q Insurance: $12,000 Miscellaneous expense: $5,300+ $0.54g Requlred: Prepare the company's planning budget for June. Aaron Boone Corporation Planning Budget For the Month Ended June 30 43.000 Budgeted customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income
During June, Aaron Boone Corporation plans to serve 43,000 customers. The company uses the following revenue and cost formulas In Its budgetlng, where q Is the number of customers served: Revenue: $4.37g Wages and salarles: $34,300 + $1.64g Supplies: $0.84q Insurance: $12,000 Miscellaneous expense: $5,300+ $0.54g Requlred: Prepare the company's planning budget for June. Aaron Boone Corporation Planning Budget For the Month Ended June 30 43.000 Budgeted customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help with a few problems from the past chapters im still stuck with.
Transcribed Image Text:**Educational Transcription: Budget Preparation Example**
During June, Aaron Boone Corporation plans to serve 43,000 customers. The company uses the following revenue and cost formulas in its budgeting, where \( q \) is the number of customers served:
- **Revenue:** \( \$4.37q \)
- **Wages and Salaries:** \( \$34,300 + \$1.64q \)
- **Supplies:** \( \$0.84q \)
- **Insurance:** \( \$12,000 \)
- **Miscellaneous Expense:** \( \$5,300 + \$0.54q \)
**Required:**
Prepare the company's planning budget for June.
---
**Aaron Boone Corporation**
**Planning Budget**
*For the Month Ended June 30*
- **Budgeted Customers Served:** 43,000
| **Category** | **Amount** |
|-------------------------|--------------|
| **Revenue** | |
| **Expenses:** | |
| - Wages and Salaries | |
| - Supplies | |
| - Insurance | |
| - Miscellaneous Expense | |
| **Total Expense** | |
| **Net Operating Income**| |
Note: The table outlines the budget structure for June, separating categories for ease of calculation and clarity. The amounts for each category must be calculated using the formulas provided based on the 43,000 customers planned. For example, calculate the revenue by multiplying \( \$4.37 \) by 43,000.
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