Exercise 9-9 Prepare a Report Showing Revenue and Spending Varlances [LO9-2] 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: Fixed Cost per Month Cost per Car Washed $0.BE $0.08 $0.15 $0.40 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,388 $4,70 $8,388 $2,600 $1,888 $0.02 For example, electricity costs are $1.300 per month plus $0.08 per car washed. The company expects to wash 8.000 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August are as follows: Lavage Rapide Incone Statement For the Month Ended August 31 Actual cars washed 8,109 $ 54,1ee Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 6.900 1.910 1,440 8,260 8,300 2.2ee 1,868 38,870 $ 23, 230 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (Le., zero variance). Input all amounts as positive values. Do not round Intermediate calculations.) Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue IF U U Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income None TU F F Exercise 11-17 Dropping or Retaining a Segment (L011-2] Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format Income statement follows: Sales Variable expenses Contribution margin Fixed expenses Department Total Hardware Linens $ 4,250,000 $ 3,110,eee $ 1,140, eee 1,282, eee 874, eee 408, eee 2,968, eee 2,236, eee 732,000 2,130, eee 1,320, eee 810, see $ 838,000 $ 916, eee $ (78,000) Net operating income (loss) A study indicates that $373,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 18% decrease in the sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Financial (disadvantage)