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 ($0.40g) 3,120 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,000 + $0.50g) 5,900 Shipping ($0.60g) 4,680 Utilities ($1,220) 1,220 Other ($500 + $0.01g) 578 Total expense 18,798 $ 13,572 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,800 Revenue $27,500 Expenses: Packing supplies 3,290 Oyster bed maintenance 3,160 Wages and salaries 6,310 Shipping 4,410 Utilities Other 1,030 1,198 Total expense 19,398 Net operating income $ 8,102