Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 pounds of oysters in August. The companys flexible budget for August appears below:

Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (g) Revenue (S4.10q) 7,500 $30,750 Expenses: Packing supplies (S0.40q) Oyster bed maintenance ($3,600) Wages and salaries ($2,400+ $0.35q) Shipping (S0.75q) Utilities ($1,210) Other ($510+S0.01q) 3,000 3,600 5,025 5,625 1,210 585 Total expense 19,045 Net operating income $11,705 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue 7,500 s 26,700 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other 3,170 3.460 5,435 5,355 1,020 1,205 19,645 Total expense Net operating income $ 7,055