Grohs 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 2,500 tenant-days, but its actual level of activity was 2,530 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the planning budget for December would be closest to:
A) $8,150
B) $11,914
C) $8,483
D) $11,633

Question

Grohs 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 2,500 tenant-days, but its actual level of activity was 2,530 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
 
-The net operating income in the planning budget for December would be closest to:
A) $8,150 
B) $11,914 
C) $8,483 
D) $11,633

Quizplus · Accepted Answer

11ea7761_175c_01a0_81a5_4f40fa593341_TB2580_00 Net operating income = ($11.10 × 2,500) − $19,600 = $8,150

Grohs Kennel Uses Tenant-Days as Its Measure of Activity; an Animal