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Long Distance Company's Travel Department Had the Following Budgeted Costs $34\quad \$ 34

Question 71

Multiple Choice

Long Distance Company's travel department had the following budgeted costs for the coming year: Variable costs $34\quad \$ 34 per trip
Fixed costs $143,360\quad \$ 143,360
 Yearly Trips  Monthly Peak Trips  West Sales Territory 110 trips 5 Midwest Sales Territory 170 trips 12 Southern Sales Territory 150 trips 15 Eastern Sales Territory 130 trips 8 The actual usage is given below:  West Sales Territory 100 trips  Midwest Sales Territory 150 trips  Southern Sales Territory 160 trips  Eastern Sales Territory 140 trips \begin{array} { l r c } & \text { Yearly Trips } & \text { Monthly Peak Trips } \\ \text { West Sales Territory } & 110 \text { trips } & 5 \\ \text { Midwest Sales Territory } & 170 \text { trips } & 12 \\ \text { Southern Sales Territory } & 150 \text { trips } & 15 \\ \text { Eastern Sales Territory } & 130 \text { trips } & 8 \\ \text { The actual usage is given below: } & \\ & \\ \text { West Sales Territory } & 100 \text { trips } \\ \text { Midwest Sales Territory } & 150 \text { trips } \\ \text { Southern Sales Territory } & 160 \text { trips } \\ \text { Eastern Sales Territory } & 140 \text { trips } \end{array} Using a single charging rate, how much will be charged to the West Sales Territory?


A) $29,000
B) $31,900
C) $29,500
D) $28,160
E) none of the above

Correct Answer:

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