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

question 9

Multiple Choice

Vanderhyde 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 3,300 tenant-days, but its actual level of activity was 3,340 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 planning budget for May would be closest to:

• A)$13,020
• B)$19,025
• C)$13,436
• D)$19,489

---

Definitions:

Actual Growth Rates

Refers to the increase in a company's revenue or earnings, measured over a specific period, reflecting the real expansion of its business activities.

Stock Valuation Models

Mathematical models or methods used to determine the intrinsic value of a company's stock.

Forecast Future Prices

The process of estimating the future market prices of goods, assets, or services based on historical data, market trends, and analysis.

Preemptive Rights

The right of existing shareholders to purchase new shares before they are offered to the public, to maintain their proportional ownership in the company.