Question
Knapper 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 January,
Knapper 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 January, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,740 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 - $ 37.00 Wages and salaries $ 3,800 $ 6.10 Food and supplies 900 14.90 Facility expenses 9,700 4.80 Administrative expenses 6,600 0.10 Total expenses $ 21,000 $ 25.90 The net operating income in the flexible budget for January would be closest to: Multiple Choice $9,414 $8,350 $8,600 $8,970
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