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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 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: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,100 $ 0.10 Maintenance $ 0.15 $ 4,500 $ 0.20 $ 8,300 $ 2,000 $ 1,600 $ 0.03 Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.60 per car washed. Required: Prepare the company's flexible budget for August.
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