Ruozzo Corporation Is a Service Company That Measures Its Output

question 61

Multiple Choice

Ruozzo Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for July. When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July.
The amount shown for net operating income in the planning budget for July would have been closest to:

• A) ($12,700)
• B) ($15,586)
• C) ($11,800)
• D) $3,700

---

Definitions:

Preferred Provider Organization

A type of health insurance plan that offers members lower rates when they use providers in the plan’s network.

Providers Choice

The principle that providers (such as healthcare professionals) have the liberty or discretion to make decisions based on their professional judgment.

Case Manager

A healthcare professional who coordinates patient care and advocates for the patient, ensuring they receive necessary services throughout their care continuum.

Registered Nurse

A nursing professional who has met all the requirements of nursing education, passed a licensing exam, and is registered to practice.