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

Multiple Choice

Paulis 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 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting:
Actual results for February:
The net operating income in the flexible budget for February would be closest to:

A) $9,900
B) $10,083
C) $9,664
D) $10,246