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

.70

Electricity

1400

.08

Maintenance

.10

Wages and salaries

5000

Depreciation

8400

Rent

2000

Administrative expenses

1700

.05

For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.80 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 10 $ 0 Net operating income