Grohs 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 2,500 tenant-days, but its actual level of activity was 2,530 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 - $33.00      Wages and salaries$3,800 $7.90Food and supplies 1,000  11.60Facility expenses 8,600  2.20Administrative expenses 6,200  0.20Total expenses$19,600 $21.90?The net operating income in the planning budget for December would be closest to:

A. $8,150
B. $11,914
C. $11,633
D. $8,483


Answer: A

Business

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