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 3,000 tenant-days, but its actual level of activity was 2,980 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) $18,080
B) $17,986
C) $16,482
D) $16,700