Doubleday Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for June:
-The net operating income in the planning budget for June would be closest to:
A)$12,486
B)$15,573
C)$12,840
D)$15,379

Question

Doubleday Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for June: 
-The net operating income in the planning budget for June would be closest to:
A)$12,486 
B)$15,573 
C)$12,840 
D)$15,379

Quizplus · Accepted Answer

To calculate the net operating income, we need to subtract the total expenses from the total revenue. 
Total Revenue = $62,700 + $31,350 = $94,050 
Total Expenses = $57,900 + $23,310 = $81,210 
Net Operating Income = Total Revenue - Total Expenses = $94,050 - $81,210 = $12,840 
Therefore, the closest amount to the net operating income in the planning budget for June is option C: $12,840.

Doubleday Clinic Uses Client-Visits as Its Measure of Activity