Bugos 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 ServedRevenue $4,200Employee salaries and wages$58,800 $900Travel expenses $700Other expenses$33,300 When the company prepared its planning budget at the beginning of March, it assumed that 40 customers would have been served.The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to:
A. $94,800
B. $102,889
C. $91,200
D. $92,600
Answer: A
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