Olympia Bivalve farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 pounds of oysters in July. The company's fiexible budget for July appears below: Olympia Bivalve Flexible Budget For the Month Ended July 31 Actual pounds (q) Revenue ($4.25q) 7,400 $31,450 Packing supplies ($0.25q) Oyster bed maintenance (S3,500) Wages and salaries ($2,400+$0.25q) Shipping (S0.60q) Utilities ($1,270) Other ($430 $0.01q) 1,850 3,500 4,250 4,440 1,270 504 Total expense 15,814 Net operating income $15,636 The actual results for July appear below: Olympia Bivalve Income Statement For the Month Ended July 31 Actual pounds Revenue 7,400 26,500 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other 2,020 3,360 4,660 4,170 1,080 1,124 16.414 Total expense 10,086 Net operating income