Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 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 (q) 7,600 Revenue ($4.10q) $ 31,160 Expenses: Packing supplies ($0.35q) 2,660 Oyster bed maintenance ($3,500) 3,500 Wages and salaries ($2,500+ $0.35q) 5,160 Shipping ($0.65q) 4,940 Utilities ($1,280) 1,280 Other ($460 + $0.019) 536 Total expense 18,076 $ 13,084 Net operating income The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: 7,600 $ 26,700 Packing supplies Wages and salaries Shipping Utilities Other Total expense 2,830 Oyster bed maintenance 3,360 5,570 4,670 1,090 1,156 18,676 Net operating income $ 8,024