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I need help with this problem. Exercise 9-9 (Static) Planning Budget (L09-1] Lavage Rapide is a Canadian company that owns and operates a large automatic
I need help with this problem.
Exercise 9-9 (Static) Planning Budget (L09-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed cost per Month Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,200 $5,000 $6,000 $8,000 $ 4,000 $0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's planning budget for August Lavage Rapide Planning Budget For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 $ 0 Step by Step Solution
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