Reference no: EM133055623

Question - Paulis 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 5,000 tenant-days, but its actual level of activity was 5,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

	Fixed element per month	Variable element per tenant-day
Revenue	-	$31.50
Wages and salaries	$4,000	$7.50
Food and supplies	600	12.30
Facility expenses	9,000	4.50
Administrative expenses	8,800	0.30
Total expenses	$22,400	$24.60

Actual results for February:

Revenue	$188,780
Wages and salaries	$23,600
Food and supplies	$36,800
Facility expenses	$19,350
Administrative expenses	$9,160

Required - Compute the net operating income in the planning budget for February?