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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 company's
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 $0.70 0.10 0.30 0.40 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,400 4,700 8,300 2,100 1,800 0.05 The company expects to charge customers an average of $5.90 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 Cars Washed Per Unit (per car) 8,000 9,000 Sales Variable expenses Total variable expenses Fixed expenses Total fixed expenses
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