Chirico Clinic Uses Client-Visits as Its Measure of Activity

question 248

Multiple Choice

Chirico Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,550 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Actual results for February:

-The net operating income in the flexible budget for February would be closest to:

• A)$16,900
• B)$23,450
• C)$18,140
• D)$22,539

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