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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 $ 0.60 Electricity $ 1,100 $ 0.07 Maintenance $ 0.30 Wages and salaries Depreciation Rent $ 4,400 $ 0.30 $ 8,300 $ 2,100 Administrative expenses $ 1,500 $ 0.02 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company actually washed 8,200 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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