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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 | $ | 0.90 | ||||
Electricity | $ | 1,600 | 0.30 | |||
Maintenance | 0.50 | |||||
Wages and salaries | 4,900 | 0.60 | ||||
Depreciation | 8,500 | |||||
Rent | 2,300 | |||||
Administrative expenses | 2,000 | 0.07 | ||||
The company expects to charge customers an average of $6.10 per car washed.
Required: Prepare a flexible budget for October assuming either 9,000 or 10,000 cars are washed.
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