Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting:
Actual results for January:
The net operating income in the planning budget for January would be closest to:
A) $15,231
B) $10,885
C) $14,547
D) $12,280

Question

Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting:
 Actual results for January:
 The net operating income in the planning budget for January would be closest to:
A) $15,231 
B) $10,885 
C) $14,547 
D) $12,280

Quizplus · Accepted Answer

11eacbfc_c576_419f_8ffe_df9e15e2c26e_TB7552_00 Net operating income = ($27.90 × 2,200) − $49,100 = $12,280

Duprey Clinic Uses Client-Visits as Its Measure of Activity