Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates

image text in transcribedimage text in transcribed

4 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: 10 Cleaning supplies points eBook Print Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses References Fixed Cost Cost per per Month Car Washed $ 0.80 $ 1,200 $ 0.06 $ 0.15 $ 4,400 $ 0.40 $ 8,300 $ 1,900 $ 1,500 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.30 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 8,400 $ 54,390 7,140 1,668 1,485 8,080 8,300 2,100 1,566 30,339 $ 24,051

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Walter T. Harrison, Charles T. Horngren

7th edition

0135012848, 978-0135012840

More Books

Students also viewed these Accounting questions

Question

Is land allowed to be depreciated? Why or why not?

Answered: 1 week ago

Question

How is the list-style-type property used with unordered lists?

Answered: 1 week ago

Question

What do their students end up doing when they graduate?

Answered: 1 week ago