Question
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,200 $ 0.08 Maintenance $ 0.10 Wages and salaries $ 4,200 $ 0.20 Depreciation $ 8,100 Rent $ 2,100 Administrative expenses $ 1,700 $ 0.02 For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.10 per car washed.
Required: Prepare the companys flexible budget for the month ended August 31st
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