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 the
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 companys costs:
Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 0.70
Electricity $ 1,300 $ 0.08
Maintenance $ 0.15
Wages and salaries $ 4,800 $ 0.30
Depreciation $ 8,000
Rent $ 2,200
Administrative expenses $ 1,500 $ 0.03
For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.30 per car washed.
Required: Prepare the companys flexible budget for August.
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