Keisker Clinic Uses Client-Visits as Its Measure of Activity

question 442

Multiple Choice

Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:Data used in budgeting: Actual results for November:
The personnel expenses in the planning budget for November would be closest to:

• A) $67,700
• B) $66,568
• C) $66,265
• D) $67,525

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Definitions:

Willingness to Pay

The maximum amount a consumer is prepared to spend on a good or service, reflecting the perceived value of the good or service to the consumer.

Next-Best Alternative

The best option available to someone after the top choice is taken away, frequently referenced in the context of opportunity cost.

Willie Nelson

A renowned American musician, actor, and activist, known for his contributions to country music.

Consumer Surplus

The split between the sum consumers are willing to pay for a good or service and the sum they finally pay.