Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs:
Fixed Cost per Month | Cost per Car Washed | |
---|---|---|
Cleaning supplies | $ 0.40 | |
Electricity | $ 1,500 | $ 0.08 |
Maintenance | $ 0.20 | |
Wages and salaries | $ 5,000 | $ 0.30 |
Depreciation | $ 8,400 | |
Rent | $ 2,100 | |
Administrative expenses | $ 1,500 | $ 0.01 |
For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.10 per car washed.
Required:
Prepare the companys flexible budget for August.
Step 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