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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 companys
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys costs: |
Fixed Cost per Month | Cost per Car Washed |
Cleaning supplies | $ | 0.70 | |||
Electricity | $ | 2,700 | 0.10 | ||
Maintenance | 0.30 | ||||
Wages and salaries | 6,000 | 0.40 | |||
Depreciation | 9,600 | ||||
Rent | 3,400 | ||||
Administrative expenses | 3,100 | 0.07 | |||
|
The company expects to charge customers an average of $7.20 per car washed. |
Required: |
Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. |
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