Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.20q) 26,000 109,200 Expenses Raw materials ($1.90q) Wages and salaries ($6,300 + $0.20q) Utilities ($2,100 $0.05q) Facility rent ($3,600) Insurance ($2,400) Miscellaneous ($800 $0.10q) 49,400 11,500 3,400 3,600 2,400 3,400 Total expense 73,700 Net operating income $ 35,500 In July, 27,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.20q) 27,000 $ 113,400 Expenses Raw materials ($1.90q) Wages and salaries ($6,300 + $0.20q) Utilities ($2,100 $0.05q) Facility rent ($3,600) Insurance ($2,400) Miscellaneous ($800$0.10q) 51,300 11,700 3,450 3,600 2,400 3,500 Total expense 75,950 Net operating income $37,450