Leist Clinic Uses Client-Visits as Its Measure of Activity

question 209

Multiple Choice

Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the flexible budget for September would be closest to:

• A) $9,661
• B) $5,367
• C) $5,516
• D) $10,360

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing to purchase.

Constant Marginal Cost

Describes a situation in production where the cost of producing an additional unit of output is the same, regardless of the level of production.

Profit-Maximizing

A strategy or point where a firm achieves the highest possible profit based on its production and selling activities.

Monopolist

A person, company, or entity that holds exclusive control over the market for a particular good or service, without competition.