Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,680 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December

Data used in budgeting:
Actual results for December:
-The net operating income in the planning budget for December would be closest to:
A)$10,125
B)$10,016
C)$14,920
D)$15,250

Question

Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,680 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December

Data used in budgeting:

Actual results for December:

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

Data used in budgeting:
 Actual results for December: 
-The net operating income in the planning budget for December would be closest to:
A)$10,125 
B)$10,016 
C)$14,920 
D)$15,250

Quizplus · Accepted Answer

Net operating income = Total Revenues - Total Expenses
From the information provided in the table, we know that the total revenues in the planning budget for December are $45,000 and the total expenses are $29,750. 
Therefore, the net operating income would be:
$45,000 - $29,750 = $15,250 
Thus, the closest answer choice to the net operating income in the planning budget for December is D) $15,250.

Lizana Clinic Uses Client-Visits as Its Measure of Activity