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:

Fixed Cost per Month

Cost per Car Washed

Cleaning supplies				$	1.00
Electricity	$	2,300			0.40
Maintenance					0.60
Wages and salaries		5,600			0.70
Depreciation		9,200
Rent		3,000
Administrative expenses		2,700			0.07

The company expects to charge customers an average of $8.70 per car washed.

Required:

Prepare a flexible budget for October assuming either 6,000 or 7,000 cars are washed.

AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Cars Washed Per Unit (per car) 6,000 7,000 Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses