Exercise 8-7 Flexible Budget [LO8-1]

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs:

Fixed Cost per Month

Cost per Car Washed

Cleaning supplies				$	0.60
Electricity	$	1,100		$	0.08
Maintenance				$	0.15
Wages and salaries	$	5,000		$	0.20
Depreciation	$	8,500
Rent	$	1,900
Administrative expenses	$	1,800		$	0.02

For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $5.90 per car washed.

Required:

Complete the companys planning budget for August.

Lavage Rapide
Planning Budget
For the Month Ended August 31
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense	0
Net operating income	$0