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 (g) Revenue ($4.30g) Expenses: Raw materials ($2.20g) Wages and salaries ($6,000 + $0.20g) Utilities ($1,900 + $0.05g) Facility rent ($3,900) Insurance ($2,100) Miscellaneous ($800 + $0.10g) Total expense Net operating income 21,000 $ 90,300 46,200 10,200 2,950 3,900 2,100 2,900 68,250 $ 22,050 In July, 22,000 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 (g) Revenue ($4.30g) Expenses: Raw materials ($2.20g) Wages and salaries ($6,000+ $0.20g) Utilities ($1,900 + $0.05g) Facility rent ($3,900) Insurance ($2,100) Miscellaneous ($800 + $0.10g) Total expense Net operating income 22,000 $ 94,600 48,400 10,400 3,000 3,900 2,100 3,000 70,800 $ 23,800