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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 companys

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys costs:

Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 1.10
Electricity $ 2,400 0.50
Maintenance 0.70
Wages and salaries 5,700 0.80
Depreciation 9,300
Rent 3,100
Administrative expenses 2,800 0.04

The company expects to charge customers an average of $8.80 per car washed.

Required: Prepare a flexible budget for October assuming either 6,500 or 7,500 cars are washed.

image text in transcribed

AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit Cars Washed (per car) 6,500 7,500 Variable expenses: Total variable expenses 0.00 0 0 $ 0.00 0 0 Fixed expenses: Total fixed expenses 0 0 $ 0 $ 0

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