Question
Auto Lavage is a Canadian company that owns and operates a large automatic car wash facility near Quebec. The following table provides data concerning the
Auto Lavage is a Canadian company that owns and operates a large automatic car wash 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 . . . . . . . . . . . . . . . . . . . . $1,400 $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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