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O eztu.neducation.com/hm.tpx Auto Lavage is a Canadian company that owns and ope

ID: 2541208 • Letter: O

Question

O eztu.neducation.com/hm.tpx Auto Lavage is a Canadian company that owns and operates a large automatic canwash facility near Quebec. The following table provides data concerning the company's costs xed C r Wa Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.80 0.20 0.40 0.50 $ 2,100 5,400 9,000 2,800 2,500 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 8000 or 9,000 cars are washed AUTO LAVAGE INC Flexible Budget For the Month Ended October 31 Budgeted Amount PerCars Washed Unit (per car) 8,000 9,000 Variable expenses Type here to search

Explanation / Answer

Auto Levage Inc. Flexible Budget For the month ended October 31st Car Washed 8000 9000 Revenue=(8000*$6.6),(9000*$6.6) $    52,800.00 $          59,400.00 Expenses Cleaning Supplies=(8000*$.80),(9000*$.80) $      6,400.00 $             7,200.00 Electricity=($2100+(8000*.20)),($2100+(9000*$.20)) $      3,700.00 $             3,900.00 Maintenance(8000*.40)),(9000*$.40)) $      3,200.00 $             3,600.00 Wages & Salaries($5400+(8000*.50)),($5400+(9000*$.50)) $      9,400.00 $             9,900.00 Depreciation $      9,000.00 $             9,000.00 Rent $      2,800.00 $             2,800.00 Administration($2500+(8000*.05)),($2500+(9000*$.05)) $      2,900.00 $             2,950.00 Total Expenses $    37,400.00 $          39,350.00 Net Income= $    15,400.00 $          20,050.00 Ashton Company Schedule of Expected Cash Collection for December December Cash Sales $    83,200.00 Collection on account October Sales=($480000*18%) $    86,400.00 November Sales($602000*60%) $ 361,200.00 December Credit Sales=($671000*20%) $ 134,200.00 Total Cash Collection $ 665,000.00