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 expected costs; Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $1.10 $2,500 0.50 0.70 5,700 0.80 9,300. 3,100 2,800 0.04 For example, electricity costs are $2,500 per month plus $0.50 per car washed. The company expects to wash 9,000 cars in October and to collect an average of $8.80 per car washed. Auto Lavage's actual level of activity was 9,100 cars. The actual revenues and expenses for October are given below. Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,100 Sales $82,600 Variable expenses: Cleaning supplies 10,510 Electricity 4,622 Maintenance 6,050 Wages and salaries 7,450 Administrative 410 Fixed expensest Electricity 2,558 Hages and salaries 5,700 Depreciation 9,300 Rent 3,100 Administrative 2,745 Sales Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Cost Formula (per car) $ Actual Flexible Budget 8.80 $ 82,600 $ 79,200 1.10 10,510 9,900 0.50 4,622 4,500 0.70. 6,050 6,300 0.80 7,450 7,200 0.04 410 360 Total variable expenses 3.14 29,042 28,260 5.66 Contribution margin 53,558 50,940 Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Total fixed expenses Operating income 2,500 5,700 9,300 3,100 2,800 23,400 0 $ 30,158 $ 50,940 Flexible Budget Variance 10 points AUTO LAVAGE INC Comprehensive Performance Report For the Month Ended October 31 Flexible Budget Actual Number of cars 9,100 References Vanable Expenses Mc Graw Total variable expenses Food expenses Variance F Budget 9,100 Sales Volume Variance State Budget 9,000 < Prev 5 of 5 Next