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 $ 1,000 $ 0.06 Maintenance $ 0.20 Wages and salaries $ 4,800 $ 0.20 Depreciation $ 8,200 Rent $ 1,800 Administrative expenses $ 1,600 $ 0.03 For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.00 per car washed.
Required: Prepare the companys flexible budget for August.
Fixed Cost per Month | Cost per Car Washed | |
---|---|---|
Cleaning supplies | $ 0.50 | |
Electricity | $ 1,000 | $ 0.06 |
Maintenance | $ 0.20 | |
Wages and salaries | $ 4,800 | $ 0.20 |
Depreciation | $ 8,200 | |
Rent | $ 1,800 | |
Administrative expenses | $ 1,600 | $ 0.03 |
For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.00 per car washed. Required: Prepare the company's flexible budget for August
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