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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 Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,300 $ 0.07 Maintenance $ 0.25 Wages and salaries $ 4,200 $ 0.20 Depreciation $ 8,400 Rent $ 2,200 Administrative expenses $ 1,700 $ 0.05 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.80 per car washed. Required: Prepare the company's flexible budget for August.
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