Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribedimage text in transcribedimage text in transcribed

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0697789938

Students also viewed these Accounting questions

Question

Explain the pages in white the expert taxes

Answered: 1 week ago

Question

Describe the goals of diversity training.

Answered: 1 week ago