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Auto Lavage is a Canadian company that owns and operates a large automatic car wash facility near Quebec

Accounting Aug 09, 2020

Auto Lavage is a Canadian company that owns and operates a large automatic car wash facility near Quebec. The following table provides data concerning the company's costs:

Fixed Cost per Month Cost per Car Washed

Cleaning supplies . . . . . . . . . . . . .                                                       $0.70

Electricity . . . . . . . . . . . . . . . . . . . . $1,400                                          $0.10

Maintenance . . . . . . . . . . . . . . . . .                                                      $0.30

Wages and salaries . . . . . . . . . . . . $4,700                                          $0.40

Depreciation . . . . . . . . . . . . . . . . . $8,300

Rent . . . . . . . . . . . . . . . . . . . . . . . . .$2,100

Administrative expenses. . . . . . . . $1,800                                          $0.05

 

For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company expects to wash 8,000 cars in October and to collect an average of $5.90 per car washed.

Required:

Prepare the company's planning budget for October.

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