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 4,600 tenant-days, but its actual level of activity was 4,580 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		-		$	31.10
Wages and salaries	$	3,600		$	7.10
Food and supplies		200			11.90
Facility expenses		8,600			4.10
Administrative expenses		8,400			0.50
Total expenses	$	20,800		$	23.60

Actual results for February:

Revenue	$	108,380
Wages and salaries	$	23,560
Food and supplies	$	36,796
Facility expenses	$	19,310
Administrative expenses	$	9,152

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

Multiple Choice

• $13,550

• $19,562

• $13,700

• $19,468