Puget sound divers is a company that provides diving services such as underwater ship repairs to clients in the puget sound area. the company’s planning budget for may appears below: puget sound divers planning budget for the month ended may 31 budgeted diving-hours (q) 300 revenue ($390.00q) $ 117,000 expenses: wages and salaries ($11,600 + $124.00q) 48,800 supplies ($4.00q) 1,200 equipment rental ($2,100 + $22.00q) 8,700 insurance ($4,000) 4,000 miscellaneous ($520 + $1.46q) 958 total expense 63,658 net operating income $ 53,342during may, the company’s activity was actually 240 diving-hours. complete a flexible budget for that level of activity.

Baskin promotions, inc. sells t-shirts decorated for a variety of concert performers. the company has developed the following budget for the coming year based on a sales forecast of 80,000 t-shirts: sales $ 1,400,000 cost of goods sold 820,000 gross profit 580,000 operating expenses ($100,000 is fixed) 418,400 operating income 161,600 income taxes (30% of operating income) 48,480 net income $ 113,120 cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. if the concert season is slow due to poor weather, baskin estimates that sales could fall to as low as 60,000 t-shirts. assume baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. a performance report would indicate that net income was: