Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 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) 7,800 Revenue ($4.15g) $ 32,370 Expenses: Packing supplies ($0.30g) 2,340 Oyster bed maintenance ($3,400) 3,400 Wages and salaries ($2,200 + $0.30g) 4,540 Shipping ($0.60g) 4,680 Utilities ($1,250) 1,250 Other ($460 + $0.019) 538 Total expense 16,748 Net operating income $ 15,622 The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance 7,800 $ 27,000 2,510 3,260