How much is the company flexible budget operating income

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Bustillo Company operates sight-seeing buses. Management has identified two cost drivers-the number of buses in operation and the number of passengers served -that it uses in its budgeting and performance reports. Data concerning the company's cost formulas appear below:

                                        Fixed Cost per Month                    Cost per Bus                    Cost per Passenger

Vehicle operating costs.                 6,800                                      476                               4

Advertising                                      2, 500

Administrative costs                            5,300                                 38                                  1.5

Insurance                                            3,900

Question 1: For example, vehicle operating costs should be $6,800 per month plus $476 per bus plus $4 per passenger. The company's sales revenue should average $34 per passenger. In July, the company operated 52 buses and served a total of 3,250 passengers. How much is the company's flexible budget operating income for July?

Reference no: EM132535860

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