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Exercise 9-7 (Algo) Planning Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The
Exercise 9-7 (Algo) Planning Budget [LO9-1]
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the companys costs:
Fixed Cost per Month | Cost per Car Washed | |
---|---|---|
Cleaning supplies | $ 0.40 | |
Electricity | $ 1,400 | $ 0.06 |
Maintenance | $ 0.15 | |
Wages and salaries | $ 4,600 | $ 0.40 |
Depreciation | $ 8,400 | |
Rent | $ 2,000 | |
Administrative expenses | $ 1,600 | $ 0.02 |
For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.50 per car washed. Required:
Prepare the companys planning budget for August.
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