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

question 79

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Jauron 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 September, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,310 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September: Jauron 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 September, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,310 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:   -The administrative expenses in the planning budget for September would be closest to: A)  $7,362 B)  $7,181 C)  $7,360 D)  $7,212
-The administrative expenses in the planning budget for September would be closest to:


Definitions:

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

Profit-maximizing Output

The point of production where a company attains its maximum profit.

Short-run Data

refers to information or statistical figures that capture economic activities or trends over a relatively brief period, emphasizing immediate effects rather than long-term patterns.

Competitive Firm

A business operating in a market where it has little to no influence on the prices of its products due to the presence of numerous competitors.

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