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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 Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $0.70 $1,800 0.10 0.30 5, 100 0.40 8, 700 2,500 2, 240 0.09 For example, electricity costs are $1,800 per month plus $0.10 per car washed. The company expects to wash 8,400 cars in October and to collect an average of $6.30 per car washed. Auto Lavage's actual level of activity was 8,500 cars. The actual revenues and expenses for October are given below:
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