Question
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 | $ | 1,000 | $ | 0.09 | |
| Maintenance | $ | 0.15 | |||
| Wages and salaries | $ | 4,700 | $ | 0.40 | |
| Depreciation | $ | 8,100 | |||
| Rent | $ | 1,900 | |||
| Administrative expenses | $ | 1,600 | $ | 0.02 | |
For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $5.90 per car washed.
Required:
Prepare the companys planning budget for August.
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 | $ | 1,000 | $ | 0.09 | |
| Maintenance | $ | 0.15 | |||
| Wages and salaries | $ | 4,700 | $ | 0.40 | |
| Depreciation | $ | 8,100 | |||
| Rent | $ | 1,900 | |||
| Administrative expenses | $ | 1,600 | $ | 0.02 | |
For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $5.90 per car washed.
Required:
Prepare the companys planning budget for August.
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 | $ | 1,000 | $ | 0.09 | |
| Maintenance | $ | 0.15 | |||
| Wages and salaries | $ | 4,700 | $ | 0.40 | |
| Depreciation | $ | 8,100 | |||
| Rent | $ | 1,900 | |||
| Administrative expenses | $ | 1,600 | $ | 0.02 | |
For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $5.90 per car washed.
Required:
Prepare the companys planning budget for August.
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 | $ | 1,000 | $ | 0.09 | |
| Maintenance | $ | 0.15 | |||
| Wages and salaries | $ | 4,700 | $ | 0.40 | |
| Depreciation | $ | 8,100 | |||
| Rent | $ | 1,900 | |||
| Administrative expenses | $ | 1,600 | $ | 0.02 | |
For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $5.90 per car washed.
Required:
Prepare the companys planning budget for August.
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Financial Accounting
Authors: Harrison, Horngren, Thomas
1st Edition
0558823513, 978-0558823511
