Question
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning
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: Cost per Car Washed Fixed Cost per Month Cleaning supplies $ 0.50 Electricity $ 1,500 $ 0.09 Maintenance $ 0.15 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,500 Rent $ 2,200 Administrative expenses $ 1,700 $ 0.03 For example, electricity costs should be $1,500 per month plus $0.09 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.80 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
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