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Important information about budgeted gross revenue

The company performs tune-ups on standard diesel engines, Using the following information, compute the budgeted gross revenue for the period.

gross revenue per tune $180
tune-up capacity per day 13
number of working days in period 76
historical occupancy rate* 65%

*This refers to the rate at which the companies service bays are actually occupied compared to their total capacity. Its is similar to the concept of hotel occupancy rate.

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Capacity per day is 13
Number of working days is 76
Total capacity in ...

Solution Summary

This solution explains how to calculate the budgeted gross revenue.