Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

$ 0.60

Electricity

$ 1,300

$ 0.06

Maintenance

$ 0.10

Wages and salaries

$ 4,200

$ 0.30

Depreciation

$ 8,000

Rent

$ 1,900

Administrative expenses

$ 1,600

$ 0.04

For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.20 per car washed.

Required:

Prepare the companys planning budget for August.

Lavage Rapide

Planning Budget

For the Month Ended August 31

Revenue

Expenses:

Cleaning supplies

Electricity

Maintenance

Wages and salaries

Depreciation

Rent

Administrative expenses

Total expense

Net operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Measuring Monitoring And Motivating Performance

Authors: Leslie G. Eldenburg, Susan Wolcott

1st Edition

0471205494, 978-0471205494

More Books

Students also viewed these Accounting questions

Question

Describe the reasons why clinical psychologists perform research.

Answered: 1 week ago