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 ($3.90g) Expenses: Raw materials ($1.90g) Wages and salaries ($6,400 + $0.20g) Utilities ($1,900 + $0.05q) Facility rent ($3,900) Insurance ($2,100) Miscellaneous ($500 +$0.10g) Total expense Net operating income 25,000 $ 97,500 47,500 11,400 3,150 3,900 2,100 3,000 71,050 $ 26,450 In July, 26,000 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 (q) Revenue ($3.90g) Expenses: Raw materials ($1.90g) Wages and salaries ($6,400+ $0.20g) Utilities ($1,900 + $0.05q) Facility rent ($3,900) Insurance ($2,100) Miscellaneous ($500 +$0.10g) Total expense Mannaration in 26,000 $ 101,400 49,400 11,600 3,200 3,900 2,100 3,100 73,300 $28.100