The chart shows the marginal revenue of producing apple pies. A 3-column table titled The return on pie production has 8 rows. The first column is labeled Pies produced per day with entries 0, 1, 2, 3, 4, 5, 6, 7. The second column is labeled Total revenue with entries blank, 10, 20, 30, 40, 50, 60, 70. The third column is labeled Marginal revenue with entries blank, 10, 10, 10, 10, 10, 10, 10. According to the chart, the marginal revenue decreases by ten dollars as production increases. increases by ten dollars as production increases. falls to zero dollars as production increases. remains the same as production increases.

Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.