Pearse 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 December, the kennel budgeted for 5,400 tenant-days, but its actual level of activity was 5,420 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Fixed element per month Variable element pertenant-day

Revenue $31.90

Wages and salarie $4,400 $7.90

Food and supplies 500 12.70

Facility expenses 8,800 4.90

Administrative expenses 7,800 0.20

Total expenses $21,500 $25.70

Actual results for December:

Revenue $109,180

Wages and salaries $23,640

Food and supplies $36,804

Facility expenses $19,390

Administrative expenses $9,168

The net operating income in the planning budget for December would be closest to:

a. $12,104

b. $20,084

c. $20,178

d .$11,980