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 $ 0.50 Electricity $ 1,400 $ 0.06 Maintenance $ 0.15 Wages and salaries $ 4,800 $ 0.20 Depreciation $ 8,200 Rent $ 2,100 Administrative expenses $ 1,600 $ 0.02 For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.10 per car washed. Required: Prepare the companys flexible budget for August.
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