Hottle Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting Fixed element per month Variable element per guest S 93 Variable element per jeep Revenue Tour guide wages Vehicle expenses Administrative expenses $109 S 59 $ 3,900 2,000 1 In February, the company budgeted for 359 guests and 129 jeeps. The company's income statement showing the actual results for the month appears below: Hottle Jeep Tours Income Statement For the Month Ended February 28 Actual guests Actual jeeps 348 131 Revenue $32,304 Expenses Tour guide wages Vehicle expenses Administrative expenses 14,029 13,837 2,348 Total expense 30,214 Net operating income $ 2,090