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 64 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					$	300
Utilities	$	1,210	$	65
Campus rent	$	4,500
Insurance	$	2,200
Administrative expenses	$	3,500	$	41	$	5

For example, administrative expenses should be $3,500 per month plus $41 per course plus $5 per student. The companys sales should average $870 per student.

The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September appear below:

	Actual
Revenue	$	52,780
Instructor wages	$	11,040
Classroom supplies	$	19,050
Utilities	$	1,880
Campus rent	$	4,500
Insurance	$	2,340
Administrative expenses	$	3,410

Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget Planning Budget Actual Results Courses 4 Students 60 Revenue 52,780 Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses 11,040 19,050 1,880 4,500 2,340 3,410 42,220 10,560 Total expense Net operating income