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				$	0.90
Electricity	$	2,000			0.30
Maintenance					0.50
Wages and salaries		5,300			0.60
Depreciation		8,900
Rent		2,700
Administrative expenses		2,400			0.04

The company expects to charge customers an average of $8.00 per car washed.

Required: Prepare a flexible budget for October assuming either 7,500 or 8,500 cars are washed.

Flexible Budget For the Month Ended October 31 Budgeted Amount Per Cars Washed Unit (per car) 7,500 8,500 Sales $ 8.00 $ 60,000 $ 68,000 Variable expenses: Cleaning supplies 0.90 6,750 7,650 Electricity 0.30 Maintenance 0.50 3.750 4,250 Wages and salaries 0.60 Administrative 0.04 Total variable expenses 2.34 5.66 10,500 49,500 11,900 56,100 $ 2,000 Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Total fixed expenses 2,000 47,500 $ $ 56,100