Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The companys planning budget for July appears below:

In July, 24,000 meals were actually served. The companys flexible budget for this level of activity appears below:

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) Revenue ($4.15q 7,200 $ 29,880 Expenses: Packing supplies ($0.40q) Oyster bed maintenance ($3,300) Wages and salaries ($2,200 $0.50q) Shipping ($0.55q) Utilities ($1,270) Other ($430+$0.01q) 2,880 3,300 5,800 3,960 1,270 502 Total expense 17,712 Net operating income $12,168 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue 7,200 $26,700 Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other 3,050 3,160 6,210 3,690 1,080 1,122 Total expense 18,312 Net operating income $ 8,388