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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 | $ 0.50 | |
Electricity | $ 1,500 | $ 0.06 |
Maintenance | $ 0.25 | |
Wages and salaries | $ 4,300 | $ 0.20 |
Depreciation | $ 8,400 | |
Rent | $ 2,100 | |
Administrative expenses | $ 1,600 | $ 0.03 |
For example, electricity costs are $1,500 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.40 per car washed.
Required:
Prepare the companys flexible budget for August.
\begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Lavage Rapide } \\ \hline For the Month Ended August 31 \\ \hline Revenue & \\ \hline Expenses: & \\ \hline Cleaning supplies & \\ \hline Electricity & \\ \hline Maintenance & \\ \hline Wages and salaries & \\ \hline Depreciation & \\ \hline Rent & \\ \hline Administrative expenses & \\ \hline Total expense & \\ \hline Net operating income & \\ \hline \end{tabular}Step by Step Solution
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