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 $ 0.50 Electricity $ 1,200 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,100 $ 0.20 Depreciation $ 8,100 Rent $ 2,200 Administrative expenses $ 1,300 $ 0.02 For example, electricity costs are $1,200 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 per car washed. Required: Prepare the companys planning budget for August.
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