Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 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 (q)		7,700
Revenue ($4.10q)	$	31,570
Expenses:
Packing supplies ($0.25q)		1,925
Oyster bed maintenance ($3,100)		3,100
Wages and salaries ($2,100 + $0.45q)		5,565
Shipping ($0.80q)		6,160
Utilities ($1,280)		1,280
Other ($430 + $0.01q)		507
Total expense		18,537
Net operating income	$	13,033

The actual results for August appear below:

Quilcene Oysteria Income Statement For the Month Ended August 31
Actual pounds		7,700
Revenue	$	26,500
Expenses:
Packing supplies		2,095
Oyster bed maintenance		2,960
Wages and salaries		5,975
Shipping		5,890
Utilities		1,090
Other		1,127
Total expense		19,137
Net operating income	$	7,363