Leaphart 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 May, the kennel budgeted for 2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the planning budget for May would be closest to:
A)$10,920
B)$10,437
C)$11,356
D)$10,737

Question

Leaphart 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 May, the kennel budgeted for 2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the planning budget for May would be closest to:

-The net operating income in the planning budget for May would be closest to:
A)$10,920 
B)$10,437 
C)$11,356 
D)$10,737

Quizplus · Accepted Answer

The net operating income in the planning budget for May would be closest to $10,920. This is because the net operating income is calculated by subtracting the total operating expenses from the total operating revenue. In this case, the total operating revenue is $21,857 and the total operating expenses are $10,937. Therefore, the net operating income is $21,857 - $10,937 = $10,920.

Leaphart Kennel Uses Tenant-Days as Its Measure of Activity; an Animal