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

question 9

Multiple Choice

Galante 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 May, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,380 tenant-days. The kennel 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)$16,115
• B)$15,926
• C)$10,130
• D)$10,300

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Definitions:

Cooperate with Management

The act of employees working together with their employers or managers in a collaborative and constructive manner to achieve common goals.

Efficiency, Equity, and Voice

A framework in labor relations emphasizing operational efficiency, fair treatment of workers, and the importance of giving employees a say in workplace decisions.

Executive Stock Option Plans

Compensation strategies that grant company executives the right to purchase a specific number of the company's shares at a set price for a certain period.

Profit Maximization

The process or strategy aimed at increasing a company's profits to its highest possible level under given constraints and conditions.