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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: Fixed Cost per month $ 3,100 Cleaning supplies Blectricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.60 0.20 0.40 0.50 6,400 10,000 3,800 3,500 0.05 The company expects to charge customers an average of $7.60 per car washed. Required: Prepare a flexible budget for October assuming either 10,000 or 11,000 cars are washed, AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Cars Washed Per Unit (per car) 10,000 11,000 comment Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses
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