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		$ 0.50
Electricity	$ 1,100	$ 0.08
Maintenance		$ 0.20
Wages and salaries	$ 4,400	$ 0.40
Depreciation	$ 8,400
Rent	$ 2,100
Administrative expenses	$ 1,700	$ 0.05

For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.10 per car washed.

Required:

Prepare the companys planning budget for August.

Lavage Rapide

Planning Budget

For the Month Ended August 31

1.Revenue

2. Expenses:

3. Cleaning supplies

4. Electricity

5. Maintenance

6. Wages and salaries

7. Depreciation

8. Rent

9. Administrative expenses

10. Total expense

11. Net operating income