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 company's costs:
Fixed Cost
per Month
Cost per
Car Washed
Cleaning supplies
$
0.40
Electricity
$
1,100
$
0.06
Maintenance
$
0.15
Wages and salaries
$
4,300
$
0.30
Depreciation
$
8,100
Rent
$
1,900
Administrative expenses
$
1,600
$
0.02
For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.80 per car washed.
Required:
Prepare the company's planning budget for August.
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