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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 | $ | 1.00 | |||
Electricity | $ | 2,300 | 0.40 | ||
Maintenance | 0.60 | ||||
Wages and salaries | 5,600 | 0.70 | |||
Depreciation | 9,200 | ||||
Rent | 3,000 | ||||
Administrative expenses | 2,700 | 0.07 | |||
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The company expects to charge customers an average of $8.70 per car washed.
Required: Prepare a flexible budget for October assuming either 6,000 or 7,000 cars are washed.
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