Sterr Air Uses Two Measures of Activity, Flights and Passengers

question 4

Multiple Choice

Sterr Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $49,340 per month plus $2,635 per flight plus $2 per passenger. The company expected its activity in January to be 73 flights and 191 passengers, but the actual activity was 75 flights and 193 passengers. The actual cost for plane operating costs in January was $246,440.
-The plane operating costs in the flexible budget for January would be closest to:

• A)$246,440
• B)$247,351
• C)$248,709
• D)$242,077

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Definitions:

Junk Mail

Unsolicited and often unwanted mail sent to a large number of recipients, typically for advertising or promotional purposes, cluttering inboxes with irrelevant messages.

Branching

In computing and logic, the process of making decisions and following different paths based on those decisions.

Leading

Leading in a research context often refers to the act of guiding or directing a team or project towards its research objectives.

Dichotomous Questions

Questions structured with two possible answers, typically "yes" or "no," making them straightforward for analysis in research.