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    Argosy University/ Phoniex University/
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Category > Management Posted 12 Nov 2017 My Price 7.00

Auto Lavage

EXERCISE 9–9 Flexible Budget [LO1]

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 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.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Nov 2017 01:11 PM My Price 7.00

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