Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs:
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data conce able provides data conc rning the company's costs Cost per Car Washed $0.70 $0.09 $0.15 $0.40 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,400 $4,300 $ 8,300 $2,000 $1,800 $0.03 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed. The actual operating results for August appear belovw Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,100 $52,500 Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 6,100 2,090 1.440 7,860 8,300 2,200 1,940 Total expense 29,930 Net operating income $22,570Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started