Ruozzo 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 and the actual results of operations for July.
When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July.
-The amount shown for net operating income in the planning budget for July would have been closest to:

Question

Ruozzo 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 and the actual results of operations for July.
  When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July.
-The amount shown for net operating income in the planning budget for July would have been closest to:

Quizplus · Accepted Answer

11ea7761_1765_c5c8_81a5_4bf8f2e2f4ca_TB2580_00

Ruozzo Corporation Is a Service Company That Measures Its Output