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

Multiple Choice

Wales 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 2,700 tenant-days, but its actual level of activity was 2,730 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 February would be closest to:

A) $9,100
B) $12,123
C) $8,800
D) $11,858