EXERCISE 98 Preparing a Flexible Budget [ LO3] 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: The company expects to charge customers an average of $5.90 per car washed. Required: Using ! Exhibit 9-2 as your guide, prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. EXERCISE 92 Sales and Production Budget [ LO2] Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year. The light sells for $40 per unit and all sales are on account. 75% of sales are expected to be collected in the month of sale. with the remainder in the following month. Accounts receivable at the beginning of the quarter were $184,000 and will all be collected during the first quarter of the year. At the end of the previous quarter there were 2,400 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year. Requiredt 1. Prepare the company's sales budget and schedule of expected eash collections. 2. Prepare the company's production budget for the upcoming fiscal year. EXERCISE 98 Preparing a Flexible Budget [ LO3] 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: The company expects to charge customers an average of $5.90 per car washed. Required: Using ! Exhibit 9-2 as your guide, prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. EXERCISE 92 Sales and Production Budget [ LO2] Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year. The light sells for $40 per unit and all sales are on account. 75% of sales are expected to be collected in the month of sale. with the remainder in the following month. Accounts receivable at the beginning of the quarter were $184,000 and will all be collected during the first quarter of the year. At the end of the previous quarter there were 2,400 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year. Requiredt 1. Prepare the company's sales budget and schedule of expected eash collections. 2. Prepare the company's production budget for the upcoming fiscal year