Question
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
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 companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,100 $ 0.06 Maintenance $ 0.30 Wages and salaries $ 4,700 $ 0.30 Depreciation $ 8,400 Rent $ 2,200 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs should be $1,100 per month plus $0.06 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.10 per car washed. Required: Prepare the companys flexible budget for August.
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