Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company’s planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) 29,000 Revenue ($4.00q) $ 116,000 Expenses: Raw materials ($2.30q) 66,700 Wages and salaries ($6,400 + $0.20q) 12,200 Utilities ($2,100 + $0.05q) 3,550 Facility rent ($3,600) 3,600 Insurance ($2,700) 2,700 Miscellaneous ($900 + $0.10q) 3,800 Total expense 92,550 Net operating income $ 23,450 In July, 30,000 actually meals were served. The company’s flexible budget for this level of activity appears below: Flight Café Flexible Budget For the Month Ended July 31 Budgeted meals (q) 30,000 Revenue ($4.00q) $ 120,000 Expenses: Raw materials ($2.30q) 69,000 Wages and salaries ($6,400+ $0.20q) 12,400 Utilities ($2,100 + $0.05q) 3,600 Facility rent ($3,600) 3,600 Insurance ($2,700) 2,700 Miscellaneous ($900 + $0.10q) 3,900 Total expense 95,200 Net operating income