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 expected 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 expects to wash 8,000 cars in October and to collect an average of $5.90 per car washed.

Auto Lavages actual level of activity was 8,100 cars. The actual revenues and expenses for October are given below:

Auto Lavage Income Statement For the Month Ended October 31

Actual cars washed

8,100

Sales

$

49,300

Variable expenses:

Cleaning supplies

6,075

Electricity

891

Maintenance

2,187

Wages and salaries

3,402

Administrative

486

Fixed expenses:

Electricity

1,450

Wages and salaries

4,700

Depreciation

8,300

Rent

2,100

Administrative

1,745

Total expense

31,336

Net operating income

$

17,964

AUTO LAVAGE INC.
Flexible Budget Performance Report
For the Month Ended October31
	Cost Formula (per car)	Actual	Flexible Budget	Flexible Budget Variance
Variable Expenses:
Total variable expenses	0.00	0	0
	0	0	0
Fixed expenses:
Total fixed expenses		0	0
		$0	$0

AUTO LAVAGE INC.
Comprehensive Performance Report
For the Month Ended October 31
	Actual cars	Flexible Budget Variance		Flexible Budget cars	Sales Volume Variance		Static Budget cars
	8,100			8,100			8,000
Variable Expenses:
Total variable expenses	0			0			0
	0			0			0
Fixed expenses:
Total fixed expenses	0			0			0
	$0			$0			$0