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Paulis Kennel uses tenantrdays as its measure of activity; an animal housed in the kennel for one day is counted as one tenanteday. During February,
Paulis Kennel uses tenantrdays as its measure of activity; an animal housed in the kennel for one day is counted as one tenanteday. During February, the kennel budgeted for 5,000 tenantedays. but its actual level of activity was 5,020 tenantrdays. 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 Variable element element per per month tenant-day Revenue - $31.58 Inlages and salaries $ 4,888 $ 7.58 Food and supplies 688 12.38 Facility expenses 9,888 4.58 Administrative expenses 8,888 8.38 Total expenses $22,488 $24.68 Actual results for February: Revenue $188,788 Wages and salaries 5 23,688 Food and supplies $ 36,888 Facility expenses 5 19,358 Administrative expenses $ 9,168 The net operating income in the planning budget for February would be closest to: Multiple Choice $12,100 O $19,776 O $12,238 $19,870
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