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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 $ 0.80 Electricity $ 1,200 $ 0.05 Maintenance $ 0.25 Wages and salaries $ 4,700 $ 0.30 Depreciation Rent $ 8,500 $ 1,900 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.20 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 $ 0
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