Question: Bustillo Company operates sightseeing buses. Management has identified two cost drivers the number of buses in operation and the number of passengers served that it

Bustillo Company operates sightseeing buses. Management has identified two cost drivers the number of buses in operation and the number of passengers served that it uses in its budgeting and performance reports. Data concerning the company's cost formulas appear below Cost per Bus $ 476 Cost per Passenger $ 35 Vehicle operating costs Advertising Administrative costs Insurance Fored Cost per Month $ 6,800 $ 2,500 $ 5.300 $ $ 15 31900 For example, vehicle operating costs should be 56.800 per month plus 5476 per bus plus $35 per passenger The company's sales revenue should average 5.30 per passenger In My, the company operated 54 buses and served a total of 3.300 passengers. How much is the company's flexible budget operating income for Mu? For example, vehicle operating costs should be $6,800 per month plus 5476 per bus plus $3.5 per passenger The company's sales revenue should average $30 per passenger In July, the company operated 54 buses and served a total of 3,300 passengers. How much is the company's flexible budget operating income for July? Multiple Choice O $36.244 O $54.946 O $62,756 $32.504
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
