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 $ 0.40 Electricity $ 1,300 $ 0.07 Maintenance $ 0.10 Wages and salaries $ 4,100 $ 0.20 Depreciation $ 8,200 Rent $ 2,000 Administrative expenses $ 1,800 $ 0.04 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8,000 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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