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)
26,000
Revenue ($3.90q)
$
101,400
Expenses:
Raw materials ($2.00q)
52,000
Wages and salaries ($6,500 + $0.20q)
11,700
Utilities ($1,900 + $0.05q)
3,200
Facility rent ($3,500)
3,500
Insurance ($2,900)
2,900
Miscellaneous ($900 + $0.10q)
3,500
Total expense
76,800
Net operating income
$
24,600
In...