Answered step by step
Verified Expert Solution
Link Copied!

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 company's

image text in transcribed
image text in transcribed
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month Car Was Cost per Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.40 $0.07 $0.10 $ 0.40 $1,500 $ 4,600 $ 8,500 1,800 1,300 $0.01 For example, electricity costs are $1,500 per month plus $0.07 per car washed. The company expected to wash 8,100 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,200 $ 49,890 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 3,740 2,037 1,050 8,200 8,500 2,000 1,281 Total expense 26,808 Net operating income $ 23,082

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial accounting

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

1st edition

471467855, 978-0471467854

More Books

Students also viewed these Accounting questions

Question

Find general solution for the ODE. y" 6y" = 3- COS T

Answered: 1 week ago

Question

Evaluate the importance of diversity in the workforce.

Answered: 1 week ago

Question

Identify the legal standards of the recruitment process.

Answered: 1 week ago