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 $ 0.40
Electricity $ 1,100 $ 0.07
Maintenance $ 0.10
Wages and salaries $ 4,300 $ 0.40
Depreciation $ 8,300
Rent $ 2,000
Administrative expenses $ 1,700 $ 0.04
For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $5.90 per car washed.
Required: Prepare the companys planning budget for August.
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