Bonavita Corporation Is a Service Company That Measures Its Output

Multiple Choice

Bonavita Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of July, it assumed that 33 customers would have been served.
The amount shown for net operating income in the planning budget for July would have been closest to:

A) ($4,300)
B) ($1,414)
C) ($1,200)
D) $8,200