Thai Connection Ltd is a travel agency. They budget monthly costs of $50,000 plus $125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were $53,000 fixed costs and $65,000 variable costs. The static budget for June is:

Question

Quizplus · Accepted Answer

The static budget is based on the original plan, not actual results. The plan was for fixed costs of $50,000 and variable costs of $125 per customer for 550 customers, which equals $68,750 ($125 * 550).

Thai Connection Ltd Is a Travel Agency