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 $ 0.05 Maintenance $ 0.25 Wages and salaries $ 4,100 $ 0.30 Depreciation $ 8,500 Rent $ 1,800 Administrative expenses $ 1,500 $ 0.01 For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.70 per car washed. Required: Prepare the companys flexible budget for August.
Lavage Rapide Flexible 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 0 $ 0Step by Step Solution
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