Asked by Matthew Medina on Apr 27, 2024
Verified
The net operating income in the planning budget for September would be closest to:
A) $9,500
B) $7,259
C) $10,260
D) $7,503
Net Operating Income
A company's income after all operating expenses, excluding the effects of interest and taxes, have been deducted from total revenues.
Planning Budget
A budget prepared before the period begins, based on projected levels of activity; acts as a guideline for income, expenses, and financial goals.
- Learn the process of determining net operating income when dealing with planning and flexible budget scenarios.
Verified Answer
NC
Nelly ChahineMay 01, 2024
Final Answer :
A
Explanation : 
Net operating income = ($15.20 × 3,000)− $36,100 = $9,500
Reference: CH09-Ref24
Leist Clinic uses client-visits as its measure of activity.During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting:
Net operating income = ($15.20 × 3,000)− $36,100 = $9,500Reference: CH09-Ref24
Leist Clinic uses client-visits as its measure of activity.During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting:
Learning Objectives
- Learn the process of determining net operating income when dealing with planning and flexible budget scenarios.
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