Question
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs:
Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 0.70
Electricity $ 1,100 $ 0.08
Maintenance $ 0.20
Wages and salaries $ 4,100 $ 0.30
Depreciation $ 8,300
Rent $ 2,000
Administrative expenses $ 1,500 $ 0.02
For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.90 per car washed.
Required: Prepare the companys flexible budget for August
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