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Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Fixed Cost Cost per- per Month Car Washed Cleaning supplies $ 8.78 Electricity $1,488 8.18 Maintenance 8.38 wages and salaries 4,788 8.48 Depreciation 8,388 Rent 2,166 Administrative expenses 1,388 8.85 The company expects to charge customers an average of $5.90 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Cars Washed Unit (per car) 8,000 9,000 Sales $ 5.90 $ 47,200 $ 53,100 Variable expenses: Cleaning supplies 0.70 5,600 6,300 Electricity 0.10 Maintenance 0.30 2,400 2,700 Wages and salaries 0.40 Administrative 0.05 Total variable expenses 1.55 8,000 9.000 Contribution margin $ 4.35 39,200 44, 100 Fixed expenses: Depreciation 8,300 8,300Cleaning supplies 0.70 5,600 6,300 Electricity 0.10 Maintenance 0.30 2,400 2,700 Wages and salaries 0.40 Administrative 0.05 Total variable expenses 1.55 8,000 9,000 Contribution margin $ 4.35 39,200 44, 100 Fixed expenses: Depreciation 8,300 8,300 Rent 2, 100 2,100 : LLLLLLY Total fixed expenses 10,400 10,400 Operating income $ 28,800 $ 33,700