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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 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 company's costs Fixed Cost per Month Cost per Car Washed $0.80 $0.07 $0.20 $0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,300 4,500 $8,500 $1,800 $1,300 $0.03 For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 8,400 Actual cars washed $ 56,050 Revenue ExpenseS Cleaning supplies Electricitv Maintenance Wages and salaries Depreciation Rent Administrative expenses 7,140 1,851 1,900 7,350 8,500 2,000 1,449 30,190 $ 25,860 Total expense Net operating income Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Planning Budget Flexible Budget Actual Results Cars washed 8,400 8,300 8,300 $56,050: Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 7,140 1,851 1,900 7,350 8,500 2,000 1,449 30,190 $25,860 Total expense Net operating income
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