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Adger Corporation is a service company that measures its output based on the number of...

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Accounting

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:

Fixed Element per Month Variable Element per Customer Served Actual Total for May
Revenue $ 5,600 $ 182,000
Employee salaries and wages $ 55,000 $ 1,600 $ 110,300
Travel expenses $ 850 $ 27,200
Other expenses $ 34,000 $ 32,600

When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers.

What net operating income would appear in Adgers flexible budget for May?

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