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 Cost per per Month $2,200 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Washed $0.90 0.30 0.50 0.60 5,500 9,100 2,900 2,600 0.06 The company expects to charge customers an average of $8.60 per car washed. Required: Prepare a flexible budget for October assuming either 5,500 or 6,500 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Cars Washed Unit (per car) 5,500 6,500 $ 8.60 $ 47,300 $ 55,900 Sales Variable expenses: 0.90 5,850 Cleaning supplies Electricity 0.30 Maintenance 0.50 4,950 3,850 2,750 8,800 2,930 4,150 3,250 9,400 2,990 Wages and salaries 0.60 Administrative 0.06 2.36 Total variable expenses Contribution margin 23,280 24,020 25,640 30,260 $ 6.24 Fixed expenses: Electricity Wages and salaries Depreciation 2,200 5,900 9,100 2,900 2,600 2,200 5,900 9,100 2,900 2,600 Rent Administrative vivummy ouppi Tuvy Electricity 0.30 3,850 4,150 Maintenance 0.50 2,750 Wages and salaries 0.60 8,800 3,250 9,400 2,990 Administrative 0.06 2,930 Total variable expenses 2.36 23,280 25,640 Contribution margin $ 6.24 24,020 30,260 Fixed expenses: 2,200 2,200 5,900 5,900 Electricity Wages and salaries Depreciation Rent 9,100 9,100 2,900 2,900 Administrative 2,600 2,600 Total fixed expenses 22,700 22,700 1,320 $ $ 7,560