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Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. Cars are washed as the conveyor belt carries
Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. Cars are washed as the conveyor belt carries the cars from the start station to the finish station. After the car moves off the conveyor belt, the car is dried manually. Workers then clean and vacuum the inside of the car. Lorenzo serviced 80,000 cars in 2016. Lorenzo reports Account Description Car wash labour Soap, cloth, and supplies Water Electric power to move conveyor belt Depreciation Salaries Cosis $260,000 $42,000 $38,000 $72,000 $64,000 $46,000 1. Classify each account as variable or fixed with respect to cash washed. Explain 2. Lorenzo expects to wash 90,000 cars in 2017. Use the cost classification developed in requirement 1 to estimate Lorenzo's total costs in 2017. Depreciation is computed on a straight-line basis
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