Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below:

Puget Sound Divers Planning Budget For the Month Ended May 31
Budgeted diving-hours (q)		300
Revenue ($410.00q)	$	123,000
Expenses:
Wages and salaries ($11,700 + $120.00q)		47,700
Supplies ($5.00q)		1,500
Equipment rental ($2,200 + $21.00q)		8,500
Insurance ($3,900)		3,900
Miscellaneous ($550 + $1.42q)		976
Total expense		62,576
Net operating income	$	60,424

During May, the companys actual activity was 290 diving-hours.