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

question 245

Multiple Choice

Tessmer 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 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel 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 flexible budget for January would be closest to:

• A) $13,878
• B) $13,788
• C) $12,963
• D) $13,070

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Definitions:

Opera Ticket

A pass or admission ticket to attend an opera performance, typically sold by the opera house or through various ticket venues.

Free Ticket

A complimentary pass or voucher granting the holder access to an event, activity, or service at no cost.

Opportunity Cost

The cost of the next best alternative that is forgone when making a decision.

Economic Concept

A principle, theory, or idea that forms the basis for economic analysis and decision-making.