Labombard Clinic Uses Client-Visits as Its Measure of Activity

question 226

Multiple Choice

Labombard Clinic uses client-visits as its measure of activity.During February, the clinic budgeted for 3, 600 client-visits, but its actual level of activity was 3, 650 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The net operating income in the planning budget for February would be closest to:

• A)$7, 382
• B)$7, 800
• C)$8, 425
• D)$7, 589

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Definitions:

Grocery Store

A retail store that sells food and other household goods.

Marginal Social Benefit

The additional benefit to society as a whole from one more unit of a good or service being consumed.

Marginal Private Benefit

The additional benefit or satisfaction received by a consumer or producer from consuming or producing one more unit of a good or service.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both private costs and any externalities.