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Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys costs:

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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: Fixed Cost per Month Cost per Car Washed $0.90 0.30 0.50 0.60 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $2,900 6,200 9,800 3,600 3,300 0.09 The company expects to charge customers an average of $7.40 per car washed. Required: Prepare a flexible budget for October assuming either 9,000 or 10,000 cars are washed. Cars Washed 9,000 10,000 AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Sales Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative 0.00 0 0 $ 0.00 0 0 Total variable expenses Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 0 0 Total fixed expenses Operating income $ 0 $ 0

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