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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: Cost per Fixed Cost per Month $1,400 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Washed $ 0.70 0.10 0.30 0.40 4,700 8,300 2,100 1,800 0.05 The company expects to charge customers an average of $5.90 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Cars Washed Unit (per car) 8,000 9,000 Sales $ 5.90 $ 47,200 $ 53,100 Variable expenses: Cleaning supplies 0.70 5,600 6,300 Electricity 0.10 Maintenance 0.30 2,400 2,700 Wages and salaries 0.40 0.05 1.55 Administrative Total variable expenses Contribution margin Fixed expenses: Depreciation 8,000 39,200 9,000 44,100 $ 4.35 8,300 8,300 0.70 5,600 6,300 0.10 Cleaning supplies Electricity Maintenance Wages and salaries 0.30 2,400 2,700 0.40 0.05 1.55 9,000 8,000 39,200 $ 4.35 44,100 Administrative Total variable expenses Contribution margin Fixed expenses: Depreciation Rent 8,300 2,100 8,300 2,100 Total fixed expenses 10,400 $ 28,800 $ 10,400 33,700 Operating income