Luckman Corporation bases its budgets on the activity measure customers served. During July, the company plans to serve 32,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Fixed elementper monthVariable element per customerRevenue - $3.70 Wages and salaries$29,300 $1.10 Supplies$0 $0.70 Insurance$8,400 $0.00 Miscellaneous expense$4,600 $0.30 Required:Prepare the company's planning budget for July.
What will be an ideal response?
| Luckman Corporation | ||
| Planning Budget | ||
| For the Month Ended July 31 | ||
| Budgeted customers served (q) | 32,000 | |
| Revenue ($3.70q) | $ | 118,400 |
| Expenses: | ||
| Wages and salaries ($29,300 + $1.10q) | 64,500 | |
| Supplies ($0.70q) | 22,400 | |
| Insurance ($8,400) | 8,400 | |
| Miscellaneous expense ($4,600 + $0.30q) | 14,200 | |
| Total expense | 109,500 | |
| Net operating income | $ | 8,900 |
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