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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 | $ 0.70 | |
Electricity | $ 1,100 | $ 0.09 |
Maintenance | $ 0.25 | |
Wages and salaries | $ 4,700 | $ 0.30 |
Depreciation | $ 8,300 | |
Rent | $ 2,200 | |
Administrative expenses | $ 1,500 | $ 0.04 |
For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.50 per car washed.
Required:
Prepare the companys flexible budget for August.
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