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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 | $ | 0.70 | ||||
Electricity | $ | 3,200 | 0.10 | |||
Maintenance | 0.30 | |||||
Wages and salaries | 6,500 | 0.40 | ||||
Depreciation | 10,100 | |||||
Rent | 3,900 | |||||
Administrative expenses | 3,600 | 0.06 | ||||
The company expects to charge customers an average of $7.70 per car washed.
Required: Prepare a flexible budget for October assuming either 10,500 or 11,500 cars are washed.
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