Answered step by step
Verified Expert Solution
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 | $ | 0.70 | |||
Electricity | $ | 1,300 | $ | 0.06 | |
Maintenance | $ | 0.15 | |||
Wages and salaries | $ | 4,800 | $ | 0.30 | |
Depreciation | $ | 8,400 | |||
Rent | $ | 2,100 | |||
Administrative expenses | $ | 1,800 | $ | 0.04 | |
For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 per car washed.
Required:
Prepare the companys planning budget for August.
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