Question
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.
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