Leven Clinic Uses Client-Visits as Its Measure of Activity

question 14

Multiple Choice

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 personnel expenses in the planning budget for September would be closest to:

• A) $56,535
• B) $54,575
• C) $55,485
• D) $56,000

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Definitions:

Constraints

are limitations or restrictions that affect the strategies and outcomes of a decision-making process or production operation.

Region Of Optimality

The set of all solutions that optimizes a given objective function within a feasible region.

Iso-Profit Line

A graphical representation in managerial economics that shows combinations of different products or inputs that yield the same level of profit.

Feasible Region

The set of all feasible combinations of decision variables.