Galante 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 May, Kennel budgeted for 3,800 tenant-days, but its actual level of activity was 3,780 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

	Fixed element per month	Variable element per tenant-day
Revenue		$30.30
Wages and salaries	$2,800	$6.30
Expendables	200	11.10
Facility expenses	7,800	3.30
Administrative expenses	7,600	0.30
Total expenses	$18,400	$21.00

Actual results for May:

Revenue	$107,580
Wages and salaries	$23,480
Expendables	$36,788
Facility expenses	$19,230
Administrative expenses	$9,136

The net operating income in the flexible budget for May would be closest to:

$18,852

$16,940

$18,946

$16,754