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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 Cost per per Month Car Washed Cleaning supplies $ 0.60 Electricity $ 1,300 $ 0.08 $ 0.15 $ 4,700 $ 0.30 $ 8,200 $ 2,100 $ 1,600 $ 0.01 Maintenance Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.60 per car washed. Dequired Required: Prepare the company's flexible budget for August. 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 0 Net operating income $ 0
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