Prepare the company’s planning budget for April. What is the net operating income?

Prepare the company’s planning budget for April. What is the net operating income?

Sund Corporation bases its budgets on the activity measure “customers served.” During April, the company plans to serve 38,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:

Fixed element per month Variable element per month

Revenue………………….. — $2.10

Wages and salaries…… $25,000 $0.50

Supplies………………… $0 $0.30

Insurance……………….. $6,200 $0.00

Miscellaneous expense…$2,500 $0.40

Required:

Prepare the company’s planning budget for April. What is the net operating income?


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