Paleo Bay Divers is a company that provides diving services such as underwater ship repairs to clients in the Paleo Bay area. The company's planning budget for July appears below: Paleo Bay Divers Planning Budget For the Month Ended July 31 Budgeted diving-hours (q) 200 Revenue (370.00q) 74,000 Expenses: Wages and salaries (15,000 + 130.00q) 41,000 Supplies (2.75q) 550 Equipment rental (2,200 + 33.00q) 8,800 Insurance (6,200) 6,200 Miscellaneous (850 + 2.10q) 1,270 Total expenses 57,820 Net operating income 16,180 During July, the company's actual activity was 160 diving-hours. ------------------------------------------- Prepare a flexible budget. According to the flexible budget, how much revenues did Paleo Bay Divers receive in July?
Paleo Bay Divers is a company that provides diving services such as underwater ship repairs to clients in the Paleo Bay area. The company's planning budget for July appears below: Paleo Bay Divers Planning Budget For the Month Ended July 31 Budgeted diving-hours (q) 200 Revenue (370.00q) 74,000 Expenses: Wages and salaries (15,000 + 130.00q) 41,000 Supplies (2.75q) 550 Equipment rental (2,200 + 33.00q) 8,800 Insurance (6,200) 6,200 Miscellaneous (850 + 2.10q) 1,270 Total expenses 57,820 Net operating income 16,180 During July, the company's actual activity was 160 diving-hours. ------------------------------------------- Prepare a flexible budget. According to the flexible budget, how much revenues did Paleo Bay Divers receive in July?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Paleo Bay Divers is a company that provides diving services such as underwater ship repairs to clients in the Paleo Bay area.
The company's planning budget for July appears below:
Paleo Bay Divers
Planning Budget
For the Month Ended July 31
Budgeted diving-hours (q) 200
Revenue (370.00q) 74,000
Expenses:
Wages and salaries (15,000 + 130.00q) 41,000
Supplies (2.75q) 550
Equipment rental (2,200 + 33.00q) 8,800
Insurance (6,200) 6,200
Miscellaneous (850 + 2.10q) 1,270
Total expenses 57,820
Net operating income 16,180
During July, the company's actual activity was 160 diving-hours.
-------------------------------------------
Prepare a flexible budget.
According to the flexible budget, how much revenues did Paleo Bay Divers receive in July?
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