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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 | $ | 0.50 | |||
Electricity | $ | 1,300 | $ | 0.10 | |
Maintenance | $ | 0.10 | |||
Wages and salaries | $ | 4,600 | $ | 0.30 | |
Depreciation | $ | 8,400 | |||
Rent | $ | 2,000 | |||
Administrative expenses | $ | 1,600 | $ | 0.04 | |
For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.00 per car washed.
Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible 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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