Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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)		7,100
Revenue ($4.20q)	$	29,820
Expenses:
Packing supplies ($0.30q)		2,130
Oyster bed maintenance ($3,400)		3,400
Wages and salaries ($2,200 + $0.35q)		4,685
Shipping ($0.65q)		4,615
Utilities ($1,260)		1,260
Other ($430 + $0.01q)		501
Total expense		16,591
Net operating income	$	13,229

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds		7,100
Revenue	$	27,400
Expenses:
Packing supplies		2,300
Oyster bed maintenance		3,260
Wages and salaries		5,095
Shipping		4,345
Utilities		1,070
Other		1,121
Total expense		17,191
Net operating income	$	10,209