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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

$

0.70

Electricity

$

1,200

$

0.08

Maintenance

$

0.25

Wages and salaries

$

4,500

$

0.30

Depreciation

$

8,500

Rent

$

2,000

Administrative expenses

$

1,700

$

0.02

For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.20 per car washed.

Required:

Prepare the companys planning budget for August.

Lavage Rapide

Planning Budget

For the Month Ended August 31

Budgeted cars washed

Revenue

Expenses:

Cleaning supplies

Electricity

Maintenance

Wages and salaries

Depreciation

Rent

Administrative expenses

Total expense

0

Net operating income

$

0

sheet is drawn here

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