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 ($4.50q) Expenses: Raw materials ($2.40q) Wages and salaries ($5,200 + $0.30q) Utilities ($2,400 +$0.05q) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 +$0.10q) Total expense Net operating income 18,000 $81,000 43,200 10,600 3,300 4,300 2,300 2,480 66,180 $14,820 In July, 17,800 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) 17,800 Revenue ($4.50q) $80,100 Expenses: Raw materials ($2.40q) 42,720 Wages and salaries ($5,200 + $0.30q) 10,540. Utilities ($2,400 + $0.05q) 3,290 Facility rent ($4,300) 4,300 Insurance ($2,300) 2,300. Miscellaneous ($680 +$0.10q) 2,460 Total expense 65,610 Net operating income $14,490