Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Vages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Varhed $0.90 $2,050 0.30 0.50 5.300 0.60 8.900 2.700 2,410 0.04 For example, electricity costs are $2,050 per month plus $0.30 per car washed. The company expects to wash 8,600 cars in October and to collect an average of $8.00 per car washed. Auto Lavage's actual level of activity was 8,700 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual care washed Sales 8.700 $71.500 Variable expenses Cleaning supplies 8.450 Electricity 2,700 Maintenance 3.825 Vages and salaries 5,360 Administrative 446 Fixed expenses Electricity 2.110 Wages and salaries 5.300 Depreciation 8.900 Rent 2.700 Administrative. 2.345 Total expense 42.136 Net operating incone $29.364 E
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started