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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 Month | Cost per Car Washed | |
---|---|---|
Cleaning supplies | $ 0.60 | |
Electricity | $ 1,200 | $ 0.09 |
Maintenance | $ 0.20 | |
Wages and salaries | $ 4,800 | $ 0.30 |
Depreciation | $ 8,200 | |
Rent | $ 1,800 | |
Administrative expenses | $ 1,700 | $ 0.04 |
For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.40 per car washed.
Required:
Prepare the companys planning budget for August.
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