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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 | $ | 0.80 | |||
Electricity | $ | 2,600 | 0.20 | ||
Maintenance | 0.40 | ||||
Wages and salaries | 5,900 | 0.50 | |||
Depreciation | 9,500 | ||||
Rent | 3,300 | ||||
Administrative expenses | 3,000 | 0.06 | |||
The company expects to charge customers an average of $7.10 per car washed.
Prepare a flexible budget for October assuming either 7,500 or 8,500 cars are washed. |
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