Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes since 1960.
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Question:
Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes since 1960. Provided below is information regarding Miracle's costs:
Fixed Cost per Month | Cost per Car Washed | ||||
Cleaning supplies | $ | 0.50 | |||
Electricity | $ | 1,100 | $ | 0.07 | |
Maintenance | $ | 0.25 | |||
Wages and salaries | $ | 4,400 | $ | 0.20 | |
Depreciation | $ | 8,500 | |||
Rent | $ | 2,100 | |||
Administrative expenses | $ | 1,800 | $ | 0.05 | |
For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.70 per car washed.
Required:
Prepare the companys flexible budget for August.
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