Question marks
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:
tableConservative EstimateOptimistic Estimate$Ticket Price
The controller provides the following information:
table$Fuel$Driver$Selling$Admin$$Facility Overhead Regardless of Number of Trips$Selling & Administration Regardless of Number of TripsInstructions
Assume the firstyear results were:
Passengers
$Revenue
$Fuel
$Driver
$Selling Variable
$Administration Variable
$Facility Costs
$Selling & Administration
A Prepare flexible budgets based on and passengers.
B Determine the breakeven point for each budget.
C Prepare a flexible budget report including variances based on the actual results of passengers.
D Discuss the results of the year and decide what action should be taken in the future as a result.
