Exercise 9-10 (Algo) Flexible Budget [LO9-1]

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs:

	Fixed Cost per Month	Cost per Car Washed
Cleaning supplies		$ 0.50
Electricity	$ 1,100	$ 0.10
Maintenance		$ 0.15
Wages and salaries	$ 4,000	$ 0.20
Depreciation	$ 8,200
Rent	$ 2,000
Administrative expenses	$ 1,700	$ 0.02

For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.60 per car washed.

Required:

Prepare the companys flexible budget for August.