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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 Cost per Car Washed Month Cleaning supplies $ 0.60 Electricity $ 1,200 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,700 $ 0.30 Depreciation Rent Administrative expenses $ 8,300 $ 2,100 $ 1,700 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.10 per car washed. Required: Prepare the company's flexible budget for August.
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