Duprey Clinic Uses Client-Visits as Its Measure of Activity

question 65

Multiple Choice

Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Actual results for January:
The net operating income in the planning budget for January would be closest to:

• A) $15,231
• B) $10,885
• C) $14,547
• D) $12,280

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Definitions:

Risk Profile

A representation of an individual's or entity's exposure to risk, especially in terms of investment.

Prices

The amount of money required to purchase a good, service, or asset, often determined by supply and demand dynamics in the market.

Hedge

Investment protection method utilized to reduce the potential for financial loss by offsetting price movements in a related asset.