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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 | $ | 0.70 | |||
Electricity | $ | 1,300 | $ | 0.07 | |
Maintenance | $ | 0.15 | |||
Wages and salaries | $ | 4,400 | $ | 0.30 | |
Depreciation | $ | 8,200 | |||
Rent | $ | 1,900 | |||
Administrative expenses | $ | 1,400 | $ | 0.04 | |
For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.70 per car washed.
Required:
Prepare the companys planning budget for August.
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