1. 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 costs:

Fixed Cost per Month Cost per Car Washed

Cleaning supplies $0.70

Electricity $1,800 0.10

Maintenance 0.30

Wages and salaries 5,100 0.40

Depreciation 8,700

Rent 2,500

Administrative expenses 2,200 0.09

The company expects to charge customers an average of $6.30 per car washed.

Required:

Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed.

AUTO LAVAGE INC.

Flexible Budget

For the Month Ended October 31

Budgeted Amount Per Unit Cars Washed

(per car) 8,000 9,000

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Fixed expenses: ??? ??? ???

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