Important information about budgeted gross revenue
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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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This solution explains how to calculate the budgeted gross revenue.
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Capacity per day is 13
Number of working days is 76
Total capacity in ...
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