Question
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facilitynear Quebec. The following table provides data concerning the company's costs:
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facilitynear Quebec. The following table provides data concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies . . . . . . . . . . . . . $0.70 Electricity . . . . . . . . . . . . . . . . . . . . $1,400 $0.10 Maintenance . . . . . . . . . . . . . . . . . $0.30 Wages and salaries . . . . . . . . . . . . $4,700 $0.40 Depreciation . . . . . . . . . . . . . . . . . $8,300 Rent . . . . . . . . . . . . . . . . . . . . . . . . .$2,100 Administrative expenses. . . . . . . . $1,800 $0.05 For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company expects to wash 8,000 cars in October and to collect an average of $5.90 per car washed. Required: Prepare the company's planning budget for October.
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