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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 Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.40 $1,400 $ 0.10 $ 0.20 $ 4,400 $ 0.30 $ 8,300 $ 1,900 $ 1,700 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.10 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.20 per car washed. Required: Prepare the company's flexible budget for August.
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