Lantagne Clinic Uses Client-Visits as Its Measure of Activity

question 25

Multiple Choice

Lantagne Clinic uses client-visits as its measure of activity.During May, the clinic budgeted for 3, 800 client-visits, but its actual level of activity was 3, 820 client-visits.The clinic 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 flexible budget for May would be closest to:

• A)$16, 668
• B)$17, 426
• C)$16, 844
• D)$17, 040

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Definitions:

Indifference Schedule

A tabular representation showing combinations of goods between which a consumer is indifferent, reflecting similar preferences as an indifference map.

Units of X

A quantifiable amount of a product or resource, denoted as 'X', used in various contexts to measure output, consumption, or other economic variables.

Marginal Rate

refers to the rate at which one variable changes as another variable changes slightly, commonly used in the context of taxes or interest.

Indifference Schedule

A representation of combinations of two goods between which a consumer is indifferent because they provide the same level of utility.