Flexible Budget [LO1]

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:

For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company expects to wash 8,000 cars in October and to collect an average of $5.90 per car washed.
Required:
Prepare the company’s planning budget for October.

Transcribed Image Text:

Fixed Cost per Month Cost per Car Washed Cleaning supplies.. Electricity... Maintenance. Wages and salaries. $0.70 $1,400 $0.10 $0.30 $4,700 $0.40 Depreciation.. $8,300 Rent... $2,100 Administrative expenses.. $1,800 $0.05