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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: Cleaning supplies Electricity Maintenance Depreciation Wages and salaries Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.60 $ 1,400 $ 0.08 $ 0.20 $ 4,300 $ 0.20 $ 8,400 $ 2,200 $ 1,500 $ 0.05 For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.50 per car washed. Required: ompany's planning budget for August.
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