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 $ 0.70

Electricity $ 1,300 $ 0.06

Maintenance $ 0.20

Wages and salaries $ 4,800 $ 0.30

Depreciation $ 8,100

Rent $ 2,200

Administrative expenses $ 1,300 $ 0.03

For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.20 per car washed.

Required:

Prepare the companys flexible budget for August.

Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 0 Net operating income $ 0