Paulis 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 February, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Fixed element per monthVariable element per tenant-dayRevenue - $35.30 Wages and salaries$2,500 $5.90Food and supplies 400 13.80Facility expenses 8,900 3.40Administrative expenses 7,800 0.40Total expenses$19,600 $23.50?Actual results for February: Revenue$85,654Wages and salaries$16,992Food and supplies$33,084Facility expenses$16,682Administrative
expenses$8,732?The net operating income in the flexible budget for February would be closest to:
A. $10,083
B. $9,664
C. $9,900
D. $10,246
Answer: B
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