Galante 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 May, the Kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,380 tenant-days. The Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Fixed element

per month Variable element per tenant-day

Revenue………………………………….—…………………………$29.90

Wages and salaries………….$2,400……………………………$5.90

Expendables…………………………600…………………………..10.70

Facility expenses……………….7,400…………………………….2.90

Administrative expenses…..7,200……………………………..0.50

Total expenses

$17,600

$20.00

Actual results for May:

Revenue…………………………………………………………….$107,180

Wages and salaries……………………………..……………….$23,440

Expendables………………………………………………………..$36,784

Facility expenses…………………………………………………$19,190

Administrative expenses……………………………………….$9,128

The net operating income in the flexible budget for May would be closest to:

$15,862

$18,638

$16,060

$18,544

Answer rating: 100% (QA)

Computation of the following Particulars Amount Revenue per tenantday 2990 ... View the full answer