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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 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 Cost Car Washed per Month Cleaning supplies $ 0. 60 Electricity $1, 000 $ 0 . 08 Maintenance $ 0 . 25 Wages and salaries $4,800 $ 0 . 40 Depreciation $8 , 100 Rent $1, 900 Administrative expenses $1, 300 $ 0. 04 For example, electricity costs are $1,000 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 company's flexible budget for August.Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Total expense Net operating income
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