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Homework answers / question archive / Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec
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 Cost per per Month $2,900 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Washed $0.90 0.30 0.50 0.60 6,200 9,800 3,600 3,300 0.09 The company expects to charge customers an average of $7.40 per car washed. Required: Prepare a flexible budget for October assuming either 9,000 or 10,000 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit Cars Washed (per car) 9,000 10,000 Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses
