2 Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 7,700 s32,340 Actual pounds (q) Revenue ($4.20q) Expenses Packing supplies ($0.35q) Oyster bed maintenance 2,695 3,500 ($3,500) Wages and salaries ($2,100 5.180 + $0.40q) Shipping ($0.70q) Utilities ($1,250) Other ($480$0.01q) 5,390 1,250 557 18,572 Total expense 13,768 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue 7,700 26,600 Expenses Packing supplies Oyster bed 2,865 3,360 maintenance Wages and salaries Shipping Utilities Other 5,590 5,120 1,060 1,177 19,172 Total expense Net operating income $7,428