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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)
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 $ 0Step by Step Solution
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