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 $ 0.60 Electricity $ 1,400 $ 0.07 Maintenance $ 0.20 Wages and salaries $ 4,300 $ 0.30 Depreciation $ 8,500 Rent $ 1,800 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.30 per car washed.
Required: Prepare the companys flexible budget for August.
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