25.00 points Lavage Rapide is a Canadian company that owns and operates a large

Question

25.00 points Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data conceming the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per per MonthCar Was $ 0.50 $ 0.08 $0.15 $ 0.40 $1,400 $4,100 $ 8,300 $ 1.800 $ 1,400 $0.04 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company actually fy washed 8,500 cars in August and collected an average of $6.70 per car washed Required: Complete the company's flexible budget for August 0

Explanation / Answer

Lavage Rapide

Flexible Budget

For the Month Ended August 31

Calculations

Amount

Revenue

(8500 Cars * $6.70)

$56,950.00

Expenses:

Cleaning Supplies

(8500 Cars * $0.50)

$ 4,250.00

Electricity

1400+ (8500 Cars * $0.08)

$ 2,080.00

Maintenance

(8500 Cars * $0.15)

$ 1,275.00

Wages and Salaries

4100+ (8500 Cars * $0.40)

$ 7,500.00

Depreciation

Fixed

$ 8,300.00

Rent

Fixed

$ 1,800.00

Administrative expenses

1400+ (8500 Cars * $0.04)

$ 1,740.00

Total Expenses

$26,945.00

Net operating income

56950 - 26945

$30,005.00

Lavage Rapide

Flexible Budget

For the Month Ended August 31

Calculations

Amount

Revenue

(8500 Cars * $6.70)

$56,950.00

Expenses:

Cleaning Supplies

(8500 Cars * $0.50)

$ 4,250.00

Electricity

1400+ (8500 Cars * $0.08)

$ 2,080.00

Maintenance

(8500 Cars * $0.15)

$ 1,275.00

Wages and Salaries

4100+ (8500 Cars * $0.40)

$ 7,500.00

Depreciation

Fixed

$ 8,300.00

Rent

Fixed

$ 1,800.00

Administrative expenses

1400+ (8500 Cars * $0.04)

$ 1,740.00

Total Expenses

$26,945.00

Net operating income

56950 - 26945

$30,005.00

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