Question
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Cost per Car Washed. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month $ 0.60 $ 1,200 $ 0.08 $ 0.25 $ 4,000 $ 0.30 $ 8,100 $ 1,900 $ 1,400 $ 0.04 For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.60 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 0 Net operating income $
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