Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $ 0.40
Electricity $ 1,100 $ 0.05
Maintenance $ 0.10
Wages and salaries $ 4,800 $ 0.20
Depreciation $ 8,000
Rent $ 2,000
Administrative expenses $ 1,600 $ 0.02

For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.30 per car washed.

Required:

Prepare the companys flexible budget for August.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Recommended Textbook for

Governmental and Nonprofit Accounting

Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi

10th edition

132751267, 978-0132751261

Students also viewed these Accounting questions