Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the flexible budget for September would be closest to:
A) $9,661
B) $5,367
C) $5,516
D) $10,360

Question

Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
 
-The net operating income in the flexible budget for September would be closest to:
A) $9,661 
B) $5,367 
C) $5,516 
D) $10,360

Quizplus · Accepted Answer

11ea7761_1760_2063_81a5_35c0777988b0_TB2580_00 Net operating income = ($23.30 × 2,170) − $40,900 = $9,661

Leist Clinic Uses Client-Visits as Its Measure of Activity