Wales 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 2,700 tenant-days, but its actual level of activity was 2,730 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per tenant-day

Revenue - $31.70

Wages and salaries $2,100 $7.70

Food and supplies 900 11.20

Facility expenses 8,500 2.70

Administrative expenses 6,700 0.10

Total expenses $18,200 $21.70

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

		$9,100
		$12,123
		$8,800
		$11,858