Chirico Clinic Uses Client-Visits as Its Measure of Activity

question 408

Multiple Choice

Chirico Clinic uses client-visits as its measure of activity.During February,the clinic budgeted for 2,500 client-visits,but its actual level of activity was 2,550 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 flexible budget for February would be closest to:

• A)$16,900
• B)$23,450
• C)$18,140
• D)$22,539