Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.70 $2,700 0.10 0.30 6,000 0.40 9,600 3,400 3,100 0.07 The company expects to charge customers an average of $7.20 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. Sales Variable expenses: Cleaning supplies Maintenance AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit Cars Washed (per car) 8,000 9,000 S 7.20 $ 57,600 $ 64,800 0.70 5,600 6,300 0.30 2,400 2,700 Total variable expenses 1.00 8,000 9,000 Contribution margin S 6.20 49,600 55,800 Fixed expenses: Electricity 3,500 3,600 Wages and salaries 9,200 9,600 Sales Variable expenses: Cleaning supplies Maintenance Total variable expenses Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Unit (per car) S 7.20 8,000 9,000 $ 57,600 $ 64,800 0.70 5,600 6,300 0.30 2,400 2,700 1.00 8,000 9,000 S 6.20 49,600 55,800 3,500 3,600 9,200 9,600 9,600 9,600 3,400 3,400 3,660 3,730 Total fixed expenses 29,360 29,930 Operating income $ 20,240 $ 25,870