Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4. Lavage Rapide is a Canadian company that owns and operates a large automatic carwash city near Montreal. It has the following information to be
4. Lavage Rapide is a Canadian company that owns and operates a large automatic carwash city near Montreal. It has the following information to be used in preparing its flexible budget The activity driver is the number of cars washed The expected revenue per car wash is $4.9 The company expects to wash 9,000 cars in August The budgeted costs are as follows: " Electricity is $1,200 per month plus 50.15 per car Depreciation is $6,000 per month Rent is $8,000 per month Cleaning supplies are $0.8 per car Labor cost is $4,000 per month and $0.30 per car Administrative expense is $5,000 per month and 50.30 per car The company actually washed 8,800 cars during the month, Actual results were as follows Revenues were $40,800 . Labor cost was $8,000 . Administration was $5,000 Cleaning supplies were $7,400 Electricity was $2,650 What is the total profit in the planning budget for the month
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started