The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reportsthe number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 65 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month		Cost per Course		Cost per Student
Instructor wages			$	2,940
Classroom supplies					$	310
Utilities	$	1,240	$	85
Campus rent	$	4,700
Insurance	$	2,100
Administrative expenses	$	3,500	$	46	$	7

For example, administrative expenses should be $3,500 per month plus $46 per course plus $7 per student. The companys sales should average $870 per student.

The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below:

	Actual
Revenue	$	53,650
Instructor wages	$	11,040
Classroom supplies	$	20,000
Utilities	$	1,990
Campus rent	$	4,700
Insurance	$	2,240
Administrative expenses	$	3,565

Gourmand Cooking School
Flexible Budget Performance Report
For the Month Ended September 30
	Actual Results			Flexible Budget			Planning Budget
Courses	4
Students	55
Revenue	$53,650
Expenses:
Instructor wages	11,040
Classroom supplies	20,000
Utilities	1,990
Campus rent	4,700
Insurance	2,240
Administrative expenses	3,565
Total expense	43,535
Net operating income	$10,115