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 |
|
|
| $ | 0.60 |
| Electricity | $ | 1,400 |
| $ | 0.06 |
| Maintenance |
|
|
| $ | 0.20 |
| Wages and salaries | $ | 4,300 |
| $ | 0.30 |
| Depreciation | $ | 8,400 |
|
|
|
| Rent | $ | 2,000 |
|
|
|
| Administrative expenses | $ | 1,300 |
| $ | 0.05 |
For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,400 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 |
|
| 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started