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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 $ 1,200 $ 0.07
Maintenance $ 0.25
Wages and salaries $ 5,000 $ 0.20
Depreciation $ 8,400
Rent $ 2,200
Administrative expenses $ 1,500 $ 0.02

For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed.

(the first column to the left has the options actual cars washed or budgeted cars washed)

image text in transcribed

Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 0 Net operating income $ 0

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