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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.
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