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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 company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.70 $0.07 Fixed Cost per Month $ 1,200 0.20 $ 4,300 $8,300 0.40 $ 2,000 $1,700 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company actually washed 8.400 cars in August and collected an average of $6.80 per car washed. es 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 Net operating income S 0 0
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