Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (g) 7,500 Revenue ($4.15g) $ 31,125 Expenses: Packing supplies ($0.30g) 2,250 Oyster bed maintenance ($3,400) 3,400 Wages and salaries ($2,500 + $0.40g) 5,500 Shipping ($0.55g) 4,125 Utilities ($1,280) 1,280 Other ($400 + $0.019) 475 Total expense 17,030 $ 14,095 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: 7,500 $ 27,100 Packing supplies Wages and salaries Shipping Utilities Other 2,420 Oyster bed maintenance 3,260 5,910 3,855 1,090 1,095 Total expense 17,630 Net operating income $ 9,470