Net operating income in the flexible budget

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Reference no: EM131213117

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, Kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. 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 — $29.50 Wages and salaries $2,000 $5.50 Food and supplies 200 10.30 Facility expenses 7,000 2.50 Administrative expenses 6,800 0.30 Total expenses $16,000 $18.60 Actual results for May: Revenue $106,530 Wages and salaries $23,400 Food and supplies $36,780 Facility expenses $19,150 Administrative expenses $9,120 The net operating income in the flexible budget for May would be closest to:

Reference no: EM131213117

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