Olympia Bivalve farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 pounds of oysters in July. The companys flexible budget for July appears below:

Olympia Bivalve Flexible Budget For the Month Ended July 31
Actual pounds (q)		7,200
Revenue ($4.25q)	$	30,600
Expenses:
Packing supplies ($0.35q)		2,520
Oyster bed maintenance ($3,600)		3,600
Wages and salaries ($2,600 + $0.40q)		5,480
Shipping ($0.55q)		3,960
Utilities ($1,220)		1,220
Other ($500 + $0.01q)		572
Total expense		17,352
Net operating income	$	13,248

The actual results for July appear below:

Olympia Bivalve Income Statement For the Month Ended July 31
Actual pounds		7,200
Revenue	$	27,300
Expenses:
Packing supplies		2,690
Oyster bed maintenance		3,460
Wages and salaries		5,890
Shipping		3,690
Utilities		1,030
Other		1,192
Total expense		17,952
Net operating income	$	9,348

Olympia Bivalve
Revenue and Spending Variances
For the Month Ended March 31
Revenue
Expenses:
Packing Supplies
Oyster Bed Maintenance
Wages and Salaries
Shipping
Utilities
Other
Total expense
Net Operating Income