Chirico Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,550 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The net operating income in the flexible budget for February would be closest to:
A)$16,900
B)$23,450
C)$18,140
D)$22,539

Question

Chirico Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,550 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting:  Actual results for February:  The net operating income in the flexible budget for February would be closest to:
A)$16,900 
B)$23,450 
C)$18,140 
D)$22,539

Quizplus · Accepted Answer

The Answer of Chirico Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,550 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting:  Actual results for February:  The net operating income in the flexible budget for February would be closest to:
A)$16,900 
B)$23,450 
C)$18,140 
D)$22,539

Chirico Clinic Uses Client-Visits as Its Measure of Activity