Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $ 0.60 | |
Electricity | $ 1,100 | $ 0.07 |
Maintenance | $ 0.15 | |
Wages and salaries | $ 4,000 | $ 0.40 |
Depreciation | $ 8,000 | |
Rent | $ 2,000 | |
Administrative expenses | $ 1,300 | $ 0.02 |
For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.80 per car washed.
Required:
Prepare the companys planning budget for August.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started