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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 | $ | 1,400 | 0.10 | ||||
Maintenance | 0.30 | ||||||
Wages and salaries | 4,700 | 0.40 | |||||
Depreciation | 8,300 | ||||||
Rent | 2,100 | ||||||
Administrative expenses | 1,800 | 0.05 | |||||
The company expects to charge customers an average of $5.90 per car washed.
Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed.
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