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 4,300 tenant-days, but its actual level of activity was 4,280 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		-		$	30.80
Wages and salaries	$	3,300		$	6.80
Food and supplies		700			11.60
Facility expenses		8,300			3.80
Administrative expenses		8,100			0.20
Total expenses	$	20,400		$	22.40

Actual results for February:

Revenue	$	108,080
Wages and salaries	$	23,530
Food and supplies	$	36,793
Facility expenses	$	19,280
Administrative expenses	$	9,146

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

• $19,331

• $19,237

• $15,552

• $15,720