Question

ABC Bus Lines runs a series of bus routes. A new route is being planned for next year. The Sales Manager says the range of passengers would be: 20,000 Conservative Estimate 40,000 Optimistic Estimate $26.00 Ticket Price The controller provides the following information: $6.00 Fuel $6.00 Driver $2.00 Selling $1.00 Admin $15.00 $100,000 Facility Overhead (Regardless of Number of Trips) $50,000 Selling & Administration (Regardless of Number of Trips) Instructions Assume the first-year results were: \textbullet 22,450\textendash Passengers \textbullet $538,800\textendash Revenue \textbullet $123,475\textendash Fuel \textbullet $95,415\textendash Driver \textbullet $41,500\textendash Selling Variable \textbullet $17,250\textendash Administration Variable \textbullet $125,000\textendash Facility Costs \textbullet $80,000\textendash Overhead A. Prepare flexible budgets based on 20,000, 30,000, and 40,000 passengers. B. Determine the break-even point for each budget. C. Prepare a flexible budget report including variances based on the actual results of 22,450 passengers. D. Discuss the results of the year and decide what action should be taken in the future as a result

          ABC Bus Lines runs a series of bus routes. A new route is being planned for next year.
The Sales Manager says the range of passengers would be:
20,000 Conservative Estimate
40,000 Optimistic Estimate
$26.00 Ticket Price
The controller provides the following information:
$6.00 Fuel
$6.00 Driver
$2.00 Selling
$1.00 Admin
$15.00
$100,000 Facility Overhead (Regardless of Number of Trips)
$50,000 Selling & Administration (Regardless of Number of Trips)
Instructions
Assume the first-year results were:
\textbullet 22,450\textendash Passengers
\textbullet $538,800\textendash Revenue
\textbullet $123,475\textendash Fuel
\textbullet $95,415\textendash Driver
\textbullet $41,500\textendash Selling Variable
\textbullet $17,250\textendash Administration Variable
\textbullet $125,000\textendash Facility Costs
\textbullet $80,000\textendash Overhead
A. Prepare flexible budgets based on 20,000, 30,000, and 40,000 passengers.
B. Determine the break-even point for each budget.
C. Prepare a flexible budget report including variances based on the actual results of 22,450 passengers.
D. Discuss the results of the year and decide what action should be taken in the future as a result

ABC Bus Lines runs a series of bus routes. A new route is being planned for next year.
The Sales Manager says the range of passengers would be:
20,000 Conservative Estimate
40,000 Optimistic Estimate
26.00 Ticket Price
The controller provides the following information:6.00 Fuel
6.00 Driver2.00 Selling
1.00 Admin15.00
100,000 Facility Overhead (Regardless of Number of Trips)50,000 Selling Administration (Regardless of Number of Trips)
Instructions
Assume the first-year results were:
•22,450–Passengers
•538,800– Revenue
•123,475–Fuel
•95,415– Driver
•41,500–Selling Variable
•17,250– Administration Variable
•125,000–Facility Costs
•80,000– Overhead
A. Prepare flexible budgets based on 20,000, 30,000, and 40,000 passengers.
B. Determine the break-even point for each budget.
C. Prepare a flexible budget report including variances based on the actual results of 22,450 passengers.
D. Discuss the results of the year and decide what action should be taken in the future as a result

Added by Diane N.

Question

Please give Ace some feedback