During March, Pipestem Resort budgeted for 27,000 customers, but actually served 25,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.82q Wages and salaries: $35,200 + $1.73q Supplies: $0.63q Insurance: $12,200 Miscellaneous expense: $5,200 + $0.13q The company wants to prepare a flexible budget for March based on the actual level of activity for the month. Based on the information above, calculate total revenue for the month ended March 31. Based on the information above, calculate total expenses for the month ended March 31. Based on the information above, calculate net operating income for the month ended March 31.
During March, Pipestem Resort budgeted for 27,000 customers, but actually served 25,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.82q Wages and salaries: $35,200 + $1.73q Supplies: $0.63q Insurance: $12,200 Miscellaneous expense: $5,200 + $0.13q The company wants to prepare a flexible budget for March based on the actual level of activity for the month. Based on the information above, calculate total revenue for the month ended March 31. Based on the information above, calculate total expenses for the month ended March 31. Based on the information above, calculate net operating income for the month ended March 31.
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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Transcribed Image Text:During March, Pipestem Resort budgeted for 27,000 customers, but actually served 25,000 customers. The company
uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.82q
Wages and salaries: $35,200 + $1.73q
Supplies: $0.63q
Insurance: $12,200
Miscellaneous expense: $5,200 + $0.13q
The company wants to prepare a flexible budget for March based on the actual level of activity for the month.
Based on the information above, calculate total revenue for the month ended March 31.
Based on the information above, calculate total expenses for the month ended March 31.
Based on the information above, calculate net operating income for the month ended March 31.
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