Magliacane 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $ 4,300
Employee salaries and wages $ 58,100 $ 1,200
Travel expenses $ 700
Other expenses $ 31,900
When the company prepared its planning budget at the beginning of February, it assumed that 39 customers would have been served. However, 35 customers were actually served during February.
The revenue in the company's flexible budget for February would have been closest to:
A. $153,200
B. $170,709
C. $167,700
D. $150,500
