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		$ 0.60
Electricity	$ 1,400	$ 0.07
Maintenance		$ 0.15
Wages and salaries	$ 4,500	$ 0.20
Depreciation	$ 8,000
Rent	$ 2,000
Administrative expenses	$ 1,400	$ 0.03

For example, electricity costs are $1,400 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.20 per car washed.

Required:

Prepare the companys planning budget for August.