Kawamura 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 2,300 tenant-days, but its actual level of activity was 2,320 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) $10,156
B) $9,890
C) $7,309
D) $7,184

Question

Kawamura 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 2,300 tenant-days, but its actual level of activity was 2,320 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) $10,156 
B) $9,890 
C) $7,309 
D) $7,184

Quizplus · Accepted Answer

11ea7761_1755_98ce_81a5_7f75d31f0fea_TB2580_00 Net operating income = ($13.30 × 2,300) − $20,700 = $9,890

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