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

question 127

Multiple Choice

Kalinowski 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 February, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
-The facility expenses in the flexible budget for February would be closest to:

• A) $18,680
• B) $19,046
• C) $19,379
• D) $18,772

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Definitions:

Marginal Rates

The additional or incremental tax rate applied to every additional dollar of income.

First Theorem

Likely refers to the First Fundamental Theorem of Welfare Economics, which states that competitive markets lead to an efficient allocation of resources under certain conditions.

Welfare Economics

Welfare Economics is a branch of economics that focuses on the optimal allocation of resources and goods to maximize the social welfare or well-being of the community.

Efficient Allocation

An optimal distribution of resources in an economy, where goods and services are distributed according to consumer preferences with minimal waste.