Rivero Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.??Fixed Element per MonthVariable Element per Container Refurbished?Revenue?$5,700?Employee salaries and wages$48,300$900?Refurbishing materials?$700?Other expenses$36,300?When the company prepared its planning budget at the beginning of September, it assumed that 22 containers would have been refurbished.Required:Prepare the company's planning budget for September.
What will be an ideal response?
| ? | ? | Planning Budget |
| ? | Containers refurbished (q) | 22 |
| ? | Revenue ($5,700q) | $125,400 |
| ? | Expenses: | ? |
| ? | Employee salaries and wages ($48,300 + $900q) | 68,100 |
| ? | Refurbishing materials ($700q) | 15,400 |
| ? | Other expenses ($36,300) | 36,300 |
| ? | Total expenses | 119,800 |
| ? | Net operating income | $5,600 |
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What will be an ideal response?
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