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) 27,000 Revenue ($4.20q) $113,400 Expenses: Raw materials ($2.20g) 59,400 Wages and salaries (56,200 $0.20g) 11,600 Utilities ($1,900 +$0.05q) 3,250 Facility rent ($3,500) 3,500 Insurance ($2,600) 2,600 Miscellaneous ($700 +$0.10g) 3,400 Total expense 83,750 Net operating income $ 29,650 In July, 28,000 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) 28,000 Revenue (54.20g) $117,600 Expenses: Rav materials ($2.20g) 61,600 Wages and salaries (56,200+ $0.20g) 11,000 Utilities ($1,900 +50.05g) 3,300 Facility rent ($3,500)) 3,500 Insurance ($2,600) 2,600 Miscellaneous ($700 $0.10g) 3,500 Total expense 86,300