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

Multiple Choice

Grohs 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 December, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,530 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 December would be closest to:

A) $8,150
B) $11,914
C) $8,483
D) $11,633