Bernes 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 October, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Fixed element per monthVariable element per tenant-dayRevenue - $30.80      Wages and salaries$3,300 $6.10Food and supplies 600  10.10Facility expenses 8,800  3.60Administrative expenses 7,600  0.10Total expenses$20,300 $19.90?The activity variance for wages and salaries in October would be closest to: 

A. $298 U
B. $122 U
C. $122 F
D. $298 F


Answer: B

Business

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Yashinski Corporation manufactures numerous products, one of which is called Alpha46. The company has provided the following data about this product:?Unit sales (a)110,000?Selling price per unit$45.00?Variable cost per unit33.00?Contribution margin per unit (b)$12.00?Total contribution margin (a) x (b)$1,320,000?Traceable fixed expense1,240,000?Net operating income$80,000Required:a. Management is considering increasing the price of Alpha46 by 15%, from $45.00 to $51.75. The company's marketing managers estimate that this price hike would decrease unit sales by 25%, from 110,000 units to 82,500 units. Assuming that the total traceable fixed expense does not change, what net operating income will Alpha46 earn at a price of $51.75 if this sales forecast is correct?b. Assuming

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