Leven Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for September:

-The net operating income in the planning budget for September would be closest to:
A) $9,500
B) $7,259
C) $10,260
D) $7,503

Question

Leven Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for September:
 
-The net operating income in the planning budget for September would be closest to:
A) $9,500 
B) $7,259 
C) $10,260 
D) $7,503

Quizplus · Accepted Answer

11ea7761_175f_8421_81a5_29e49961f46c_TB2580_00 Net operating income = ($15.20 × 3,000) − $36,100 = $9,500

Leven Clinic Uses Client-Visits as Its Measure of Activity