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

Multiple Choice

Nakhle 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 October, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,960 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:
Actual results for October:
-The net operating income in the planning budget for October would be closest to:

A) $2,757
B) $9,500
C) $2,684
D) $9,900