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

$

0.70

Electricity

$

1,300

$

0.10

Maintenance

$

0.10

Wages and salaries

$

4,200

$

0.30

Depreciation

$

8,200

Rent

$

1,900

Administrative expenses

$

1,600

$

0.01

For example, electricity costs are $1,300 per month plus $0.10 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 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 0 $ 0