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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.

Solution Preview

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.

$2.19