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

question 272

Multiple Choice

Lutts 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 November, the kennel budgeted for 3,800 tenant-days, but its actual level of activity was 3,850 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
-The net operating income in the planning budget for November would be closest to:

• A) $12,720
• B) $9,648
• C) $9,904
• D) $13,115

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