Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 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) Revenue (S4.20g) 7,700 $32,340 Expenses Packing supplies (S0.40q) Oyster bed maintenance (S3,500) Wages and salaries ($2,100 $0.25q) Shipping (50.65q) Utilities ($1,210) Other ($470 $0.01q) 3,080 3,500 4,025 5,005 1210 547 Total expense 17,367 Net operating income $14,973 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue 7,700 $ 27,400 Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other 3,250 3,360 4,435 4,735 1,020 1,167 Total expense 17,967 Net operating income $ 9,433