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:

For example, electricity costs are $1,000 per month plus $0.05 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.00 per car washed.

Required:

Prepare the companys flexible budget for August.

Fixed Cost per Month $1,000 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.70 $ 0.05 $ 0.10 $ 0.30 $ 5,000 $ 8, 200 $ 2,100 $ 1,400 $ 0.04 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 Net operating income