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
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 MonthCost per Car Washed
Cleaning supplies $0.50
Electricity$1,100 $0.09
Maintenance $0.20
Wages and salaries$4,500 $0.30
Depreciation$8,300
Rent$1,900
Administrative expenses$1,700 $0.04
For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.30 per car washed. Required:
Prepare the companys planning budget for August.
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