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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 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Cost per Car Washed per Month $0.50 $1,100 $ 0.06 $ 0.30 $4,200 $ 0.30 $8,400 $1,800 $1,400 $ 0.04 Rent Administrative expenses For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.00 per car washed. 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 Net operating income 0 0
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