Please solve the following questions determining your own way 3) Magliacane Corp
ID: 360848 • Letter: P
Question
Please solve the following questions determining your own way 3) Magliacane 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 Fixed Element per Month Variable Element per Customer Served Revenue Employee salaries and wages Travel expenses Other expenses $ 2,800 S 600 $ 200 S 43,100 S 21,400 When the company prepared its planning budget at the beginning of February, it assumed that 39 customers would have been served. However, 35 customers were actually served during February.Explanation / Answer
(No question has been asked so I am assuming that flexible budget needs to be prepared).
Thus income statement as per flexible budget:
Formula Amount Revenue 2800*35 98,000.00 Employee salaries and wages 43100+(35*600) 64,100.00 Travel expenses 200*35 7,000.00 Other expenses 21,400.00 21,400.00