Exercise 9-11 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 data concerning the companys costs:

	Fixed Cost per Month			Cost per Car Washed
Cleaning supplies				$	0.80
Electricity	$	1,400		$	0.05
Maintenance				$	0.25
Wages and salaries	$	4,000		$	0.30
Depreciation	$	8,300
Rent	$	2,000
Administrative expenses	$	1,500		$	0.04

For example, electricity costs are $1,400 per month plus $0.05 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.50 per car washed.

Required:

Prepare the companys flexible budget for August.