Muehlberger 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 MonthVariable Element per Customer Served?Revenue?$4,800?Employee salaries and wages$58,200$1,300?Travel expenses?$500?Other expenses$40,800?A total of 28 customers were actually served during April.Required:Prepare a flexible budget for the actual level of activity for April.
What will be an ideal response?
| ? | ? | Flexible Budget |
| ? | Customers served (q) | 28 |
| ? | Revenue ($4,800q) | $134,400 |
| ? | Expenses: | ? |
| ? | Employee salaries and wages ($58,200 + $1,300q) | 94,600 |
| ? | Travel expenses ($500q) | 14,000 |
| ? | Other expenses ($40,800) | 40,800 |
| ? | Total expenses | 149,400 |
| ? | Net operating income | $(15,000) |
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