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:

For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.60 per car washed.

Required:

Prepare the companys flexible budget for August.

CleaningsuppliesElectricityMaintenanceWagesandsalariesDepreciationRentAdministrativeexpensesFixedCostperMonth$1,100$4,600$8,300$2,000$1,700CostperCarWashed$0.60$0.10$0.20$0.03 Lavage Rapide Flexible Budget For the Month Ended August 31 \begin{tabular}{|l|l|} \hline & \\ \hline Revenue & \\ \hline Expenses: & \\ \hline Cleaning supplies & \\ \hline Electricity & \\ \hline Maintenance & \\ \hline Wages and salaries & \\ \hline Depreciation & \\ \hline Rent & \\ \hline Administrative expenses & \\ \hline Total expense & $ \\ \hline Net operating income & 0 \\ \hline \end{tabular}