Duck Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During December, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Fixed Element per Month Variable Element per Tenant-Day Revenue - $ 37.70 Wages and salaries $ 3,000 $ 6.10 Food and supplies 800 13.40 Facility expenses 9,800 4.70 Administrative expenses 7,100 0.20 Total expenses $ 20,700 $ 24.40 The net operating income in the planning budget for December would be closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice $10,156 $7,309 $7,184 $9,890