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

Business

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