Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 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) 7,300 Revenue ($4.20g) $ 30,660 Expenses: Packing supplies ($0.25g) 1,825 Oyster bed maintenance ($3,600) 3,600 Wages and salaries ($2,100 + $0.35g) 4,655 Shipping ($0.60g) 4,380 Utilities ($1,220) 1,220 Other ($430 + $0.01g) 503 Total expense 16,183 $ 14,477 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: 7,300 $ 27,300 Packing supplies Wages and salaries Shipping Utilities Other 1,995 Oyster bed maintenance 3,460 5,065 4,110 1,030 1,123 Total expense 16,783 Net operating income. $ 10,517