Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 1,400 $ 0.10
Maintenance $ 0.30
Wages and salaries $ 4,700 $ 0.40
Depreciation $ 8,300
Rent $ 2,100
Administrative expenses $ 1,800 $ 0.05

For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company actually washed 8,100 cars in October and to collect an average of $5.90 per car washed.

Required:

Prepare the companys flexible budget for October. (Input all amounts as positive values.)

Auto Lavage Flexible Budget For the Month Ended October 31
Revenue $
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

2. In what ways have your peers and your parents helped shape you?

Answered: 1 week ago

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago