Question

Auto Leverage is a Canadian company that owns and operates a large automatic car wash facility near Quebec. The following table provides data concerning the company’s costs:

The company expects to charge customers an average of $5.90 per car washed. Prepare a flexible budget (only income statement) for October assuming either 8,000 or 9,000 cars are washed.

Answer 1

	Activity Level	8,000	9,000	A
	Rate Per Wash	5.90	5.90	B
	Income-Budgeted	47,200	53,100	A*B