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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
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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $0.90 $ 3,400 0.30 0.50 6,700 0.60 10,300 4,100 3,800 0.08 The company expects to charge customers an average of $7.90 per car washed. Required: Prepare a flexible budget for October assuming either 11,500 or 12,500 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Variable expenses: Budgeted Amount Cars Washed Per Unit (per car) 11,500 12,500 Total variable expenses 0.00 0 0 $ 0.00 0 0 Fixed expenses: Required: Prepare a flexible budget for October assuming either 11,500 or 12,500 ca AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Cars Washed Per Unit (per car) 11,500 12,500 Variable expenses: Total variable expenses Fixed expenses: 0.00 0 $ 0.00 0 Total fixed expenses 0 0 0 $
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