Question
Paulis 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 February,
Paulis 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 February, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,380 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Fixed element per month Variable element per tenant-day Revenue - $ 29.90 Wages and salaries $ 2,400 $ 5.90 Food and supplies 600 10.70 Facility expenses 7,400 2.90 Administrative expenses 7,200 0.50 Total expenses $ 17,600 $ 20.00 Actual results for February: Revenue $ 107,180 Wages and salaries $ 23,440 Food and supplies $ 36,784 Facility expenses $ 19,190 Administrative expenses $ 9,128 The net operating income in the planning budget for February would be closest to
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