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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.
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 company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses. Fixed Cost per Month Cost per Car Washed $ 0.70 $ 1,300 $ 0.05 $ 0.15 $ 4,300 $ 0.30 $ 8,400 $ 2,100 $ 1,800 $ 0.05 For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.10 per car washed. Required: Prepare the company's flexible budget for August.
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