| During August, Diga Corporation plans to serve 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: |
| Revenue: $4.20q |
| Wages and salaries: $33,700 + $1.50q |
| Supplies: $0.70q |
| Insurance: $11,000 |
| Miscellaneous: $4,800 + $0.40q |
| Required: |
| Prepare the company’s planning budget for August. (Input all amounts as positive values.) |
| Diga Corporation Planning Budget For the Month Ended August 31 |
|
| Revenue | $ |
| Expenses: | |
| Wages and salaries | |
| Supplies | |
| Insurance | |
| Miscellaneous | |
| Total expenses | |
Answer
We have been given in the sum that , Diga Corporation plans to serve 35,000 customers so we take q as 35000 and make further calculation
| Diga Corporation | |
| Planning Budget | |
| For the Month Ended August 31 | |
| Particular | Amount in$ |
| Revenue (4.20 x35000) |
147000 |
| Expenses: | |
| Wages and salaries (33700+1.50 * (35000) ) |
86200 |
| Supplies (0.70 x 35000) |
24500 |
| Insurance | 11000 |
| Miscellaneous (4800+0.40(35000) ) |
18800 |
| Total expenses | 140500 |
| Net Operating Income | 6500 |
