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Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes since 1960. Provided below is information regarding Miracle's costs: Fixed
Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes since 1960. Provided below is information regarding Miracle's costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies $ 0.60 Electricity $1,100 $ 0.07 Maintenance $ 0.25 Wages and salaries $ 4,500 $ 0.20 Depreciation $ 8,300 Rent $ 2,000 Administrative expenses $ 1,600 $ 0.03 For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed. Required: Prepare the company's planning budget for August. Miracle Car Wash Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
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