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 $ 0.40 Electricity $ 1,300 $ 0.06 Maintenance $ 0.15 Wages and salaries $ 4,800 $ 0.20 Depreciation $ 8,300 Rent $ 2,200 Administrative expenses $ 1,300 $ 0.01 For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed. Required: Prepare the companys planning budget for August.
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