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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 company's costs: Cleaning supplies Electricity Maintenance. Wages and salaries. Depreciation Administrative expenses Rent Fixed Cost per Month $1,000 $4,000 $8,100 $1,900 $1,500 Cost per Car Washed Required: Prepare the company's flexible budget for August. $0.50 $0.08 $0.25 $0.40 $0.04 For example, electricity costs are $1,000 per month plus $0.08 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.20 per car washed.
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