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

Multiple Choice

Laboe 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 2,900 tenant-days, but its actual level of activity was 2,940 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) $7,191
B) $7,391
C) $7,900
D) $8,260