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Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170
Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month | Variable element per client-visit | ||||
Revenue | - | $ | 50.80 | ||
Personnel expenses | $ | 26,600 | $ | 15.60 | |
Medical supplies | 1,400 | 9.40 | |||
Occupancy expenses | 7,600 | 2.40 | |||
Administrative expenses | 5,300 | 0.10 | |||
Total expenses | $ | 40,900 | $ | 27.50 | |
The net operating income in the flexible budget for September would be closest to:
$9,661
$5,367
$5,516
$10,360
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