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Please try to answer this practice question for my test next week. Thank you very much! Auto Lavage is a Canadian company that owns and
Please try to answer this practice question for my test next week. Thank you very much!
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Fixed Cost per Month Cost per Car Washed $0.70 0.10 0.30 0.40 $ 1,800 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 5,100 8,700 2,500 2,200 0.09 The company expects to charge customers an average of $6.30 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Cars Washed Unit (per car) 8,000 9,000 Variable expenses Cleaning supplies Electricity The company expects to charge customers an average of $6.30 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Cars Washed Unit (per car) 8,000 9,000 Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Total variable expenses Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Total fixed expenses Operating incomeStep by Step Solution
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