Question
Doubleday Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 3,200 client visits, but its actual level of activity was
Doubleday Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 3,200 client visits, but its actual level of activity was 3,180 client-visits. The clinichas provided the following data concerning the formulas to be used in its budgeting for June:
Revenue.........Fixed -0-.......Var.element per client-visit.........$31.20
Personal Exp....Fixed...$31,800....Var. element per client visit....$8.10
Medical Supplies....Fixed....1,700.....Var. element per client visit......4.20
Occupancy exp......Fixed.....7,100....Var.element per client visit......1.10
Administrative Exp.......Fixed.....3,200....Var. element per client visit.....0.10
Total Expenses.....Fixed$43,800.......Var. element per client visit $13.50
The net operating income in the planning budget for June would be closest to...........
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