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Exercise 9-8 (Algo) Flexible Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The
Exercise 9-8 (Algo) Flexible 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 | $ 0.80 | |
Electricity | $ 1,000 | $ 0.07 |
Maintenance | $ 0.15 | |
Wages and salaries | $ 4,500 | $ 0.30 |
Depreciation | $ 8,300 | |
Rent | $ 2,000 | |
Administrative expenses | $ 1,600 | $ 0.03 |
For example, electricity costs are $1,000 per month plus $0.07 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.70 per car washed.
Required:
Prepare the companys flexible budget for August.
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