Mock Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:
Actual results for August:
-The net operating income in the planning budget for August would be closest to:
A)$8,404
B)$17,880
C)$16,820
D)$8,678

Question

Mock Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:

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

Data used in budgeting:
 Actual results for August: 
-The net operating income in the planning budget for August would be closest to:
A)$8,404 
B)$17,880 
C)$16,820 
D)$8,678

Quizplus · Accepted Answer

The net operating income in the planning budget is calculated based on the planned revenues and expenses for August, and $16,820 is the closest figure provided that matches the expected net operating income.

Mock Clinic Uses Client-Visits as Its Measure of Activity