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 60 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 $ 2,960 $290 $1,230 $ 75 $4,900 $2,300 $3,700 $ 45 $ 3 For example, administrative expenses should be $3,700 per month plus $45 per course plus $3 per student. The company's sales should average $870 per student. The company planned to run four courses with a total of 60 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 49,300 $ 11, 120 $ 17,250 $ 1,940 $ 4,900 $ 2,440 $ 3,486 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Planning Budget Courses 4 Students 54 Revenue 49,300 Expenses: Instructor wages Classroom supplies 11,120 17,250 Utilities 1,940 Campus rent 4,900 2,440 Insurance Administrative expenses 3,486 41,136 Total expense Net operating income $ 8,164