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

Puget Sound Divers

Planning Budget

For the Month Ended May 31

Budgeted diving-hours (q)

350

Revenue ($410.00q)

$

143,500

Expenses:

Wages and salaries ($11,900 + $128.00q)

56,700

Supplies ($6.00q)

2,100

Equipment rental ($2,500 + $25.00q)

11,250

Insurance ($4,200)

4,200

Miscellaneous ($520 + $1.48q)

1,038

Total expense

75,288

Net operating income

$

68,212

During May, the company's actual activity was 340 diving-hours.