6.

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the companys costs:

	Fixed Cost per Month	Cost per Car Washed
Cleaning supplies		$ 0.60
Electricity	$ 1,100	$ 0.06
Maintenance		$ 0.15
Wages and salaries	$ 4,400	$ 0.30
Depreciation	$ 8,300
Rent	$ 2,200
Administrative expenses	$ 1,500	$ 0.04

For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.20 per car washed.

Required:

Prepare the companys flexible budget for August.

\begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Lavage Rapide } \\ \hline \multicolumn{1}{|c|}{ Flexible Budget } \\ \hline For the Month Ended August 31 \\ \hline Revenue & \\ \hline Expenses: & \\ \hline Cleaning supplies & \\ \hline Electricity & \\ \hline Maintenance & \\ \hline Wages and salaries & \\ \hline Depreciation & $ \\ \hline Rent & \\ \hline Administrative expenses & \\ \hline Total expense & \\ \hline Net operating income & \\ \hline \end{tabular}