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Emergency Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 4,000 client-visits. Its actual level of activity in July was

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Emergency Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 4,000 client-visits. Its actual level of activity in July was 4,200 client-visits. The clinic has this data concerning the formulas to be used in its budgeting: Fixed Variable Element Element per Per Month Client-visit Revenue $0.00 $50.00 Personnel expenses $80,000 $12.00 Medical supplies 2,000 8.00 Occupancy expenses 9,000 3.00 Administrative expenses __6.000 2.00 Total expenses $97.000 $25.00 The activity variance for personnel expenses in July would be closest to: O $1,400 O $2,400 $2.100 $1,200 Global corporation sells 95,000 units of its main product each month at a selling price of $100 per unit. The variable cost per unit is $80. Traceable fixed costs amount to $1,606,000 per month. Management believes they can increase the number of units sold to 110,000 units, if they reduce the selling price to $95 per unit. This change in selling price will not cause a change in variable cost per unit or traceable fixed costs. Based on this information, how much net operating income will Global earn from this product each month if price is reduced to $95 per unit? O $194,000 O $254.000 $44,000 $59.000

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