Marquardt Corporation uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During April, the kennel budgeted for 4,080 tenant-days, but its actual level of activity was 3,890 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Selling Price Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses $31.40 Fixed cost component per month Variable cost component per tenant-day $ 4,000 $7.50 440 8,100 8,400 $ 20,940 11.80 3.60 0.70 $ 23.60
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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![Actual results for April:
Revenue
$ 119,950
$ 25,240
$ 39,770
$ 19,260
Administrative expenses $9,140
Wages and salaries
Food and supplies
Facility expenses
The net operating income in the planning budget for April would be closest to:
A
B
C
D
$10,884
$9,402
$13,605
$107,172](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7be1bef2-77c6-46ad-ae76-fae184ecff15%2F4f7161e0-dcf2-405a-8160-3013f5ff7e27%2Fjkdgkro_processed.png&w=3840&q=75)
![Marquardt Corporation uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During
April, the kennel budgeted for 4,080 tenant-days, but its actual level of activity was 3,890 tenant-days. The kennel has provided the following data
concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
$31.40
Fixed cost component per month Variable cost component per tenant-day
$ 4,000
$ 7.50
440
8,100
Administrative expenses 8,400
$ 20,940
Selling Price
Wages and salaries
Food and supplies
Facility expenses
Total expenses
11.80
3.60
0.70
$ 23.60](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7be1bef2-77c6-46ad-ae76-fae184ecff15%2F4f7161e0-dcf2-405a-8160-3013f5ff7e27%2Fwq7zsin_processed.png&w=3840&q=75)
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