Question
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs:
Fixed Cost per Month Cost per Car Washed
Cleaning supplies $0.50
Electricity $1,200 $0.07
Maintenance $0.20
Wages and salaries $4,800 $0.30
Depreciation $8,500
Rent $1,800
Administrative expenses $1,400 $0.05
For example, electricity costs are $1,200 per month plus $0.07 per car washed. The company actually washed 8,500 cars in August and expects to collect an average of $6.70 per car washed.
Required:
Complete the companys flexible budget for August.
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