Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs Cost per Car Washed $0.40 $ 0.09 $0.20 $0.30 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $4,200 $8,000 $2,000 $ 1,300 $ 0.02 For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company expected to wash 8,300 cars in August and to collect an average of $6.80 per car washed. The company actually washed 8,200 cars in August. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,200 $ 55,685 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent 3,690 2,108 2,160 7,500 8,000 2,000 1.544 Administrative expenses Total expense 27,002 Net operating income $28,683
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