Knapper Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

question 159

Multiple Choice

Knapper Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,740 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

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

• A) $9,414
• B) $8,350
• C) $8,600
• D) $8,970

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Definitions:

Circumference

The perimeter or distance around the edge of a circle or circular object.

Consumer Surplus

The variance between the total price consumers are willing to pay for a good or service and the actual price they pay.

Benefit

An advantage, gain, or positive outcome derived from a specific action, policy, or product.

Buyers

Entities or individuals who purchase goods or services for personal use, consumption, or investment.