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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
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 Kent Administrative expenses Fixed Cost per Month Cost per Car Mashed $1.10 $2,9101 0.50 0.70 6,100 0.80 9,700 3,500 3,240 0.08 For example, electricity costs are $2,910 per month plus $0.50 per car washed. The company expects to wash 9.400 cars in October and to collect an average of $8.20 per car washed. Auto Lavage's actual level of activity was 9,500 cars. The actual revenues and expenses for October are given below.
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