Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $ | 0.09 | |
Maintenance | $ | 0.20 | |||
Wages and salaries | $ | 4,800 | $ | 0.20 | |
Depreciation | $ | 8,100 | |||
Rent | $ | 2,100 | |||
Administrative expenses | $ | 1,700 | $ | 0.01 | |
For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.00 per car washed.
Required:
Prepare the companys flexible budget for August.
Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating incomeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started