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

Multiple Choice

Kalinowski 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 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
-The net operating income in the flexible budget for February would be closest to:

A) $10,370
B) $10,608
C) $7,642
D) $7,775