## Answers

Puget Sound Divers | |

Flexible Budget | |

For the Month ended May 31 | |

Actual diving -hours | 240 |

Revenue | 108000 |

Expenses: | |

Wages and salaries | 41360 |

Supplies | 960 |

Equipment Rental | 8260 |

Insurance | 3900 |

Miscellaneous | 860.8 |

Total expenses | 55340.8 |

Net operating Income | 52659.2 |

Revenue is computed as 240 hours * 450 per hour

Wages = 11600 + 124 * 240 = 41360

Supplies = 4 * 240 = 960

Insurance is taken as fixed = 3900 ( same amount as at 250 hours )

Miscellaneous = 520+1.42 * 240 = 860.80

Net Income = Sales revenue - Total expenses.

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