Bugos Corporation Is a Service Company That Measures Its Output

question 27

Multiple Choice

Bugos 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. When the company prepared its planning budget at the beginning of March, it assumed that 40 customers would have been served.

The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to:

• A)$91,200
• B)$94,800
• C)$92,600
• D)$102,889

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Definitions:

Formal Business Plan

A detailed document that outlines the strategy, objectives, and financial forecasts for a business.

Financial Projection

Financial projection is an estimate of future revenues, expenses, and profitability of a business or project.

Sequence

An ordered collection of objects, actions, or events where one follows another in a specific arrangement.

Informational Report

A detailed and factual presentation of information on a particular subject, aimed at providing comprehensive understanding without offering opinions.