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 |
| S 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.
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