Flight Cafe 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 (a) Revenue ($3.900) Raw materials ($2.10g) Expenses: Wages and salaries (56,400 $0.20g) Utilities ($2,000 Facility rent ($3,500) $0.050) Insurance ($2,200) Miscellaneous ($500 50.100) Total expense 21,000 $ 81,900 44,100 10,600 3,050 3,500 2,200 2,600 Net operating income 66,050 $ 15,850 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($3.984) Expenses: Flight Caf Flexible Budget For the Month Ended July 31 Raw materials ($2.100) Wages and salaries ($6,400+ $0.209) Utilities ($2,000 + $0.05q) Facility rent ($3,500) Insurance ($2,200) Miscellaneous ($500 $0.109) Total expense Net operating income Required 22,000 $ 85,800 46,200 10,800 3,100 3,500 2,200 2,700 68,500 $ 17,300