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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 per Month | Cost per Car Washed | ||||
Cleaning supplies | $ | 0.60 | |||
Electricity | $ | 1,300 | $ | 0.06 | |
Maintenance | $ | 0.20 | |||
Wages and salaries | $ | 4,800 | $ | 0.40 | |
Depreciation | $ | 8,400 | |||
Rent | $ | 2,200 | |||
Administrative expenses | $ | 1,800 | $ | 0.02 | |
For example, electricity costs are $1,300 per month plus $0.06 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 companys planning budget for August.
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