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 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per cost per cost per Month Course Student $ 2,940 $ 270 $1,230 $ 50 $4,700 $2,000 $3,600 $ 40 $ 6 For example, administrative expenses should be $3,600 per month plus $40 per course plus $6 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 53 students. The actual operating results for September appear below: Revenue Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 53,170 $ 11,040 $ 16,860 $ 1,840 $ 4,700 $ 2,140 $ 3,564 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Planning Budget Courses Students Revenue 53,170 Expenses: Instructor wages Classroom supplies Utilities Campus rent 11,040 16,860 1,840 4,700 2,140 3,564 Insurance Administrative expenses Total expense Net operating income 40,144 13,026