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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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 0.70 $ 1,100 $ 0.07 $ 0.30 $ 4,300 $ 0.30 $ 8, 200 $ 1,900 $ 1,600 $ 0.01 For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company actually washed 8,600 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 (Alt + A)
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