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

question 209

Multiple Choice

Vanderhyde 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 May, the kennel budgeted for 3, 300 tenant-days, but its actual level of activity was 3, 340 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Actual results for May: The net operating income in the planning budget for May would be closest to:

• A)$13, 020
• B)$19, 025
• C)$13, 436
• D)$19, 489

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Definitions:

U.S. Exports

involve products and services that are produced in the United States and sold to other countries, contributing to the country's GDP.

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level and the total demand for goods and services in an economy.

Marginal Propensity

The proportion of an additional income that an individual spends on consuming goods and services, rather than saving.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, suggesting how income influences spending behavior.