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    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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    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.