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 $ 0.70 Electricity $ 1,300 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,100 $ 0.30 Depreciation $ 8,300 Rent $ 2,100 Administrative expenses $ 1,600 $ 0.01 For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.40 per car washed.

Required: Prepare the companys flexible budget for August.

Lavage Rapide
Flexible Budget
For the Month Ended August 31
Actual cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income