Natural Clinic uses client-visits as its measure of activity. During November, t

Question

Natural Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,520 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed Cost per month Variable Cost per client-visit Revenue - $44.00 Personnel expenses $26,200 $12.50 Medical supplies 1,200 8.70 Occupancy expenses 8,200 1.20 Administrative expenses 4,700 0.30 Total expenses $40,300 $22.70 What is the net operating income in the flexible budget for November?

show work

Explanation / Answer

Answer:-

Natural Clinic Flexible Budget (2520 Client visits) For November Particulars Amount $ Revenue 2520 client visits*$44 per visit 110880 Less:- Variable Expenses Personal Expenses 2520 client visits*$12.50 31500 Medical supplies 2520 client visits*$8.70 21924 Occupancy expenses 2520 client visits*$1.20 3024 Adminitrative expenses 2520 client visits*$0.30 756 Contribution margin 53676 Less:- Fixed expenses Personal Expenses 26200 Medical supplies 1200 Occupancy expenses 8200 Adminitrative expenses 4700 Net Opreating Income 13376

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.