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: Fixed Element per MonthVariable element per tenant-dayRevenue - $37.70      Wages and salaries$3,000 $6.10Food and supplies 800  13.40Facility expenses 9,800  4.70Administrative expenses 7,100  0.20Total expenses$20,700 $24.40?The net operating income in the planning budget for December would be closest to: 

A. $10,156
B. $7,184
C. $9,890
D. $7,309


Answer: C

Business

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