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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 Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month $ 0.50 $ 1,300 $ 0.08 $ 0.20 $ 4,100 $ 0.20 $ 8,100 $ 2,200 $ 1,600 $ 0.03 For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 per car washed. Required: Prepare the company's planning budget for August.
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