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required Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the
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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: Cost per Fixed Cost per month $2,400 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Wasbed $1.10 0.50 0.70 0.80 5,700 9,300 3,100 2,890 0.04 The company expects to charge customers an average of $8.80 pe car washed. Required: Prepare a flexible budget for October assuming either 6,500 or 7,500 cars are washed. 7,500 AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Cars Washed Per Unit (per car) 6,500 $ 57,200 Variable expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative Total variable expenses 0.00 0 $ 0.00 57,200 0 0 Fixed expenses 0 0 Total fixed expensos $ 57.200 $ 0 Step by Step Solution
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