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Glenn Martin is the owner of the GM Car Wash. The company sells car washes for $10. The variable cost (water, soap, and labor) per
Glenn Martin is the owner of the GM Car Wash. The company sells car washes for $10. The variable cost (water, soap, and labor) per wash is $4. The company incurs $100,000 of fixed costs per year. The company expects to deliver 25,000 washes in the coming year.
a. Based on these data, prepare a static budget for the coming year.
b. How would net income differ if 15,000 washes were delivered?
c. How would net income differ if 30,000 washes were delivered?
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