Spohn Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for February: The net operating income in the planning budget for February would be closest to:
A) $11,862
B) $11,653
C) $11,040
D) $10,617

Question

Spohn Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for February:  The net operating income in the planning budget for February would be closest to:
A) $11,862 
B) $11,653 
C) $11,040 
D) $10,617

Quizplus · Accepted Answer

11eacbfc_c577_c849_8ffe_0d6847154ea0_TB7552_00 Net operating income = ($14.10 × 3,400) − $36,900 = $11,040

Spohn Clinic Uses Client-Visits as Its Measure of Activity