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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 the
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 companys costs:
Fixed Cost per Month | Cost per Car Washed | ||||
Cleaning supplies | $ | 0.60 | |||
Electricity | $ | 1,500 | $ | 0.08 | |
Maintenance | $ | 0.20 | |||
Wages and salaries | $ | 4,900 | $ | 0.40 | |
Depreciation | $ | 8,300 | |||
Rent | $ | 1,900 | |||
Administrative expenses | $ | 1,300 | $ | 0.03 | |
For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.80 per car washed.
Required:
Prepare the companys flexible budget for August.
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