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Maliszewski 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 March, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,410 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
-The facility expenses in the flexible budget for March would be closest to:
Residual Income
The amount of net income an entity generates beyond its required rate of return on its investments.
Invested Assets
Assets that a company or individual allocates resources toward with the expectation of generating a future benefit or income.
Maximum Return
The highest possible profit or gains that can be achieved from an investment or business venture.
Income From Operations
The profit realized from a business's ongoing operations, excluding any income derived from investments or extraordinary one-time events.
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