Witten Corporation Is a Service Company That Measures Its Output

question 14

Multiple Choice

Witten 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.
A total of 27 customers were actually served during January.
-The revenue in the company's flexible budget for January would have been closest to:

• A) $178,200
• B) $180,900
• C) $147,400
• D) $145,200

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Definitions:

Industrial Capitalism

Economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.

Commercial Capitalism

An economic system where trade, goods, and capital are privately controlled and operated for profit, characterized by the emergence of market economies and merchant classes.

Trust

Refers to the firm belief in the reliability, truth, ability, or strength of someone or something.

Saloon

A place for drinking alcohol that was especially popular in the United States during the 19th and early 20th centuries, serving as a social hub in towns and cities.