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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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month $2,100 5,400 9,000 2,800 2,500 Cost per Car Washed $0.80 0.20 0.40 0.50 0.05 The company expects to charge customers an average of $6.60 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed.

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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month $2,100 5,400 9,000 2,800 2,500 Cost per Car Washed $0.80 0.20 0.40 0.50 0.05 The company expects to charge customers an average of $6.60 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variable expenses: Total variable expenses Fixed expenses: Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Total fixed expenses $ 0.00 0.00 $ Cars Washed 8,000 0 0 0 0 $ 9,000 0 0 0
Transcribed Image Text:Variable expenses: Total variable expenses Fixed expenses: Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Total fixed expenses $ 0.00 0.00 $ Cars Washed 8,000 0 0 0 0 $ 9,000 0 0 0
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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month $2,100 5,400 9,000 2,800 2,500 Cost per Car Washed $0.80 0.20 0.40 0.50 0.05 The company expects to charge customers an average of $6.60 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed.
Transcribed Image Text: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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month $2,100 5,400 9,000 2,800 2,500 Cost per Car Washed $0.80 0.20 0.40 0.50 0.05 The company expects to charge customers an average of $6.60 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed.
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