Flight Caf prepares in-flight meals for airlines and its planning budget for July appears below:

Flight Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q)	29,000
Revenue ($4.10q)	$ 118,900
Expenses:
Raw materials ($2.20q)	63,800
Wages and salaries ($6,100 + $0.20q)	11,900
Utilities ($1,900 + $0.05q)	3,350
Facility rent ($3,500)	3,500
Insurance ($2,300)	2,300
Miscellaneous ($400 + $0.10q)	3,300
Total expenses	88,150
Net operating income	$ 30,750

In July, 30,000 meals were actually served. The companys flexible budget for this level of activity appears below:

Flight Caf
Flexible Budget
For the Month Ended July 31
Budgeted meals (q)	30,000
Revenue ($4.10q)	$ 123,000
Expenses:
Raw materials ($2.20q)	66,000
Wages and salaries ($6,100+ $0.20q)	12,100
Utilities ($1,900 + $0.05q)	3,400
Facility rent ($3,500)	3,500
Insurance ($2,300)	2,300
Miscellaneous ($400 + $0.10q)	3,400
Total expenses	90,700
Net operating income	$ 32,300