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 5,400 tenant-days, but its actual level of activity was 5,420 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		$31.90
Wages and salaries	$4,400	$7.90
Food and supplies	500	12.70
Facility expenses	8,800	4.90
Administrative expenses	7,800	0.20
Total expenses	$21,500	$25.70

Actual results for May:

Revenue	$109,180
Wages and salaries	$23,640
Food and supplies	$36,804
Facility expenses	$19,390
Administrative expenses	$9,168

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

$12,104

$20,084

$11,980

$20,178