4 Auto Lavage is a Canadian company that owns and operates a large automatic car

Question

4 Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility Quebec. The following table provides data concerning the company's costs Fixed Cost per Month Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.60 0.10 0.30 0.40 $1,700 5,000 8,600 2,400 2,100 0.08 The company expects to charge customers an average of $6.20 per car washed Required. Prepare a flexible buge for October assuming either 9,500 or 10,500 cars are washed

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Auto Lavage inc Flexible Budget For the month ended Oct 31 Paticulars Budgeted Amount per unit Cars Washed Per Car                9,500.00                 10,500.00 Sales                         6.20              58,900.00                 65,100.00 Variable expenses Cleaning supplies                         0.60                5,700.00                    6,300.00 Electricity                         0.10                    950.00                    1,050.00 Maintenance                         0.30                2,850.00                    3,150.00 wages and salaries                         0.40                3,800.00                    4,200.00 Administrative expenses                         0.08                    760.00                       840.00 Total Variable expenses                         1.48              14,060.00                 15,540.00 Fixed Expenses Electricity                1,700.00                    1,700.00 Wages and salaries                5,000.00                    5,000.00 Depreciation                8,600.00                    8,600.00 Rent                2,400.00                    2,400.00 Administrative expenses                2,100.00                    2,100.00 Total Fixed expenses              19,800.00                 19,800.00 Total Expenses              33,860.00                 35,340.00 Income              25,040.00                 29,760.00

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