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Question Four Ali operates a car wash. Incoming cars are put on an automatic conveyor belt. Cars are washed as the conveyor belt carries

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Question Four Ali operates a car wash. Incoming cars are put on an automatic conveyor belt. Cars are washed as the conveyor belt carries them from the start station to the finish station. After a car moves off the conveyor belt, it is dried manually. Workers then clean and vacuum the inside of the car. Ali serviced 80,000 cars in 2009. Ali reports the following costs for 2009. Revenue (selling price) per car wash is $8. Account Description Costs Car wash labor (working per car washed) $260,000 Soap, cloth, and supplies 40,000 Water 30,000 Electric power to move conveyor belt 70,000 Depreciation (straight-line method) 64,000 Manager Salary (monthly salary) 46,000 Required: 1. Classify each account as variable or fixed with respect to the number of cars washed. 2. Suppose Ali washed 90,000 cars in 2009. Prepare contribution format income statement (CVP analysis). Use the cost classification you developed in required one. 3. Calculate break-even point in units (car washed) and in dollars.

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