Lizana Clinic Uses Client-Visits as Its Measure of Activity

question 46

Multiple Choice

Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,680 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December

Data used in budgeting:
Actual results for December:
-The net operating income in the planning budget for December would be closest to:

• A)$10,125
• B)$10,016
• C)$14,920
• D)$15,250

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Definitions:

Binding Contract

A binding contract is a legally enforceable agreement between two or more parties that is recognized by law, where each party has made promises or agreements that must be fulfilled.

Dispatched

refers to the act of sending off something or someone to a destination or for a purpose.

Master Offer

A principal or primary proposal made during negotiations, often outlining the main terms and conditions of a contract.

Valid Acceptance

In contract law, a manifestation of assent to the terms of an offer in a manner invited or required by the offer, constituting a binding legal agreement.