Problem:
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.