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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 $ 0.60
Electricity $ 1,300 $ 0.08
Maintenance $ 0.25
Wages and salaries $ 4,600 $ 0.20
Depreciation $ 8,400
Rent $ 2,100
Administrative expenses $ 1,400 $ 0.05

For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.10 per car washed.

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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 Net operating income

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