Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 pounds of oysters in August. The companys 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 ($0.25q)	1,900
Oyster bed maintenance ($3,600)	3,600
Wages and salaries ($2,000 + $0.30q)	4,280
Shipping ($0.80q)	6,080
Utilities ($1,210)	1,210
Other ($450 + $0.01q)	526
Total expense	17,596
Net operating income	$ 13,564

The actual results for August were as follows:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds	7,600
Revenue	$ 27,400
Expenses:
Packing supplies	2,070
Oyster bed maintenance	3,460
Wages and salaries	4,690
Shipping	5,810
Utilities	1,020
Other	1,146
Total expense	18,196
Net operating income	$ 9,204