Thai Connection Ltd Is a Travel Agency

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 flexible budget for June is:

A) Fixed Costs $50,000; Variable Costs $68,750
B) Fixed costs $50,000: Variable Costs $72,500
C) Fixed costs $53,000; Variable Costs $65,000
D) Fixed costs $53,000; Variable Costs $72,500