Flight Caf prepares in-flight meals for airlines in its kitchen located next to a 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 ($4.109) Expenses: Raw materials ($1.800) Wages and salaries ($6,200 + $0.20) Utilities ($2,100 + $0.05q) Facility rent ($3,000) Insurance ($3,000) Miscellaneous ($600 +$0.109) Total expense Net operating income 27,000 $ 110,700 48,600 11,600 3,450 3,000 3,000 3,300 72,958 $ 37,750 In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.10q) Expenses: Flight Caf Flexible Budget For the Month Ended July 31 Raw materials ($1.809) Wages and salaries ($6,200+ $0.20) Utilities ($2,100 +$0.05a) Facility rent ($3,000) Insurance ($3,000) Miscellaneous ($600 +$0.10) Total expense Net operating income. 28,000 $ 114,800 50,400 11,800 3,500 3,000 3,000 3,400 75,100 $ 39,700