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

question 32

Multiple Choice

Wales 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 February, the kennel budgeted for 2, 700 tenant-days, but its actual level of activity was 2, 730 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: The net operating income in the planning budget for February would be closest to:

• A)$9, 100
• B)$12, 123
• C)$8, 800
• D)$11, 858

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Definitions:

Elasticity of Labor Supply

The responsiveness of workers to change their supply of labor (hours worked) in reaction to changes in wage rates.

Payroll Tax

Tariffs levied on employers and employees alike, generally calculated by a fraction of the workers' salaries.

Regressive

Describes a tax or policy that disproportionately affects lower-income individuals, typically by taking a larger percentage of their income.

Payroll Tax

Burdens placed on employers along with their employees, customarily determined as a percentage of the staff's wages.