The net operating income in the flexible budget for February ?

The net operating income in the flexible budget for February ?

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:

Data used in budgeting:
Fixed Variable
element element per
per month tenant-day
Revenue………………………………… – $36.30
Wages and salaries……………………. $ 2,000 $ 5.90
Expendables……………………………. 400 13.80
Facility expenses………………………. 8,100 4.60
Administrative expenses……………… 6,500 0.10
Total Expenses………………………… $17,000 $24.40

Actual results for February:
Revenue……………………………….. $83,306
Wages and salaries…………………… $16,338
Expendables…………………………… $33,446
Facility expenses……………………… $19,212
Administrative expenses…………….. $6,602

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

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