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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 company's
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Cost per Fixed Cost per Month $ 3,400 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Washed $0.90 0.30 0.50 0.60 6,700 10,300 4,100 3,800 0.08 The company expects to charge customers an average of $7.90 per car washed. Required: Prepare a flexible budget for October assuming either 11,500 or 12,500 cars are washed. Prepare a flexible budget for October assuming either 11,500 or 12,500 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Cars Washed 11,500 12,500 Variable expenses: Total variable expenses 0.00 0 0 $ 0.00 0 0 Fixed expenses: Total fixed expenses 0 0 $ 0 $ 0
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