Answer:
Rippelmeyer Kennel
The net operating income in the planning budget for May would be closest to:
= $30,740.
Explanation:
a) Data and Calculations:
Budgeted tenant-days = 3,600
Actual tenant-days = 3,550
Actual results for May:
Revenue                          $73,540
Wages and salaries         $16,170
Expendables                     19,735
Facility expenses              18,125
Administrative expenses  7,600
Total expenses             $61,630
Net operating income   $11,910
                                     Fixed element     Variable element    Total
                                        per month          per tenant day
Revenue                                                      $34.80           $125,280
Wages and salaries         $3,900                 $6.00            $25,500
Expendables                         400                    9.70              35,320
Facility expenses              9,400                    4.50              25,600
Administrative expenses 7,400                    0.20                  8,120
Total expenses               21,100                   20.40            $94,540
Net Operating Income                                                       $30,740